Chippenham-based renewable energy company, Good Energy Group, has once again rejected the advances of Stroud-based Ecotricity, following the publication yesterday of the latter’s offer to shareholders.
Calling it a “host offer”, the Board of Good Energy said it will publish its full response in due course but reiterated its unanimous and unequivocal rejection of Ecotricity’s offer.
Will Whitehorn, Chair of Good Energy, said:
“The Board firmly rejects this highly opportunistic and hostile offer and does not agree that the takeover of Good Energy by a loss-making competitor would help the Company compete more effectively in the energy market.
“Such a takeover would deprive investors of the opportunity to support, and benefit from, Good Energy’s future growth. It would place the collective interests of our investors and customers in combatting the climate crisis into the hands of one individual.
“As a standalone business, Good Energy has developed momentum in building the next phase of people-powered climate action in the UK. Together with Zap-Map, the UK’s leading EV charging mapping service, we give our investors a rare opportunity to take part in the fast-growing clean energy and transport market.”
The board of Good Energy has once again advised shareholders to take no action in respect of the offer.
Ecotricity has held shares in Good Energy since 2016, and currently holds 25.1 per cent of the company.
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.”
Ecotricity has a development function for new green energy generation, something it says Good Energy lacks.
Ecotricity also operates a ‘bills into mills’ concept which links a customer’s energy bills to the building of new green energy sources. Adding Good Energy to this could boost the combined company’s development pipeline of new green energy sources, said Ecotricity.
The offer states: “We believe that combining the two businesses will better enable us to ensure the future of genuinely green alternatives for the increasingly green-conscious energy-buying public. This is an objective that both companies strive to achieve separately at present.”