06-June-2024: Update-on-proposed-acquisition-of-Genex-by-J-POWER.PDF

Plus: Genex releases Transaction Booklet.PDF

I've cobbled together the following indicative timetable from that last announcement - which is 373 pages long by the way...

As with the Renesas takeover of Altium, this J-Power takeover of Genex is going to go through. The Japanese don't like to play games, like some people do (won't mention any countries in particular). Japanese firms tend to have longer term investment horizons that allow them to pay more upfront and avoid any bidding wars because nobody else is prepared to pay any more. In other words, bid high up front and get the thing done ASAP, and be happy that you've made a good purchase, even if the returns are going to take a little longer to flow through.

Although with FIRB and the shareholder meetings to vote on the scheme and everything, it still tends to take months to actually settle. As with the Altium acquisition by Renesas, this one will also settle in August, or if the scheme is voted up, possibly on the last day of July. If the scheme is voted down, J-Power will have that on-market T/O offer open at 27 cps (half a cent less than the 27.5 cps off-market offer being voted on at the scheme meeting on the 16th July) and the on-market offer would stay open until 14th August, unless extended.

Still no word on Skip Capital's intentions - they hold 19.99% of Genex and are the largest "Subs", with J-Power being the second largest (with 7.72%).

I hold both Genex and Altium, and both were purchased at significantly lower prices than where they're being acquired now, so happy enough with these outcomes. I hear people saying they wanted to hold some of these companies forever, but realistically we rarely get the chance to hold a company for decades - there is just too much M&A that goes on. It's part of the game and in this case, both companies are being taken out at a fair price, so I'm not unhappy.