Yesterday we reported that Stroud-headquartered Ecotricity had made three bids for Good Energy, which the Chippenham energy provider has rejected. In a statement the company said:
“The Board of Good Energy has considered the possible offer of 340 pence per share for the entire ordinary share capital of the Company to be satisfied solely in cash announced on 12 July 2021 by Ecotricity Group Limited.
“The Board has unanimously rejected the possible offer.
The Board’s preliminary reasons for rejecting the possible offer are as follows: It is inadequate and fundamentally undervalues the Group and fails to recognise the intrinsic value of the Group’s shares/”
The Company said it will make a further announcement in due course outlining in more detail the reasons the Board is rejecting the possible offer.
In the meantime, Good Energy’s shareholders are strongly advised by the Board to take no action in respect of the possible offer.
Will Whitehorn, Chair of Good Energy, said: “Good Energy and its subsidiary Zap – Map have an extremely healthy, independent future focused on the best interests of our customers, employees and shareholders. We are committed to delivering growth for the exclusive benefit of our shareholders, not Ecotricity’s.”
In its latest accounts for the year ended April 30th, lodged with Companies House, Ecotricity Group, increased its turnover to £230 million (up from £201 million the previous year), at it continues to grow its customer base, but it reported a pre-tax loss of £3.9 million.
The generation side of the business owns 23 windmills and one solar farm.