The Board of Good Energy is, again, urging its shareholders to reject the advances of Stroud-based Ecotricity and says it has received written confirmation from six shareholders representing just under 11 per cent of the company’s share capital that they do not intend to accept the offer.
Ecotricity has held shares in Good Energy since 2016, and currently holds 25.1 per cent of the company.
Will Whitehorn, the Chippenham company’s Chair, said: “Ecotricity wishes to make Good Energy a renewable generation developer again, an approach we moved away from a number of years ago in favour of supporting small-scale renewable generators through long-term power purchase contracts.”
The company also says the “hostile and highly opportunistic offer” significantly undervalues Good Energy as it does not take into account Good Energy’s potential for growth.
Will continued: “Ecotricity believes we can compete more effectively together as genuinely green suppliers in a market of similar-looking products. This is something Good Energy is already effectively doing by itself, as the only supplier with Uswitch Green Tariff Gold Standard accreditation for all its tariffs.
“Ecotricity has been a loss-making business for the past four years. Its claim that they consider us ‘sister companies, with more in common than separates us’, is contradicted by their history as a disruptive shareholder, voting down 100 per cent of our proposed special resolutions.
“As a listed company, Good Energy is committed to high standards of corporate governance which the Board believes provides the Company with the appropriate framework to support the business and implement its strategy.
“In contrast, Ecotricity has offered little insight on its own corporate governance and how the businesses would be run going forward. The Board believes that if this takeover were successful and the Company de-listed, key decision making would ultimately rest with one individual which would not be in the best interests of the Company and its stakeholders.
“Such a takeover would place the collective interests of our investors and customers in combatting the climate crisis into the hands of one individual.
“We, the Board, believe Ecotricity would take this company backwards.
“Those Directors who hold Good Energy shares will not be accepting the Offer. The Board unanimously recommends that you reject it too, by taking no action.”
According to Ecotricity’s rationale for its offer: “The proposed combination would create a green energy supply entity of more significant scale with more rounded capabilities, better able to compete with the Big Six and the raft of newer entrants – many of whom make green energy and (environmental related) claims in their marketing. It would be a consolidation of the two oldest green energy suppliers in Britain, enabling both companies to better compete in today’s crowded and highly competitive market.”