Ecotricity reveals £56m pursuit of Good Energy
Ecotricity this morning revealed that it has made a number of offers to take control of the stock of fellow energy supplier Good Energy.
The latest offer, which values the firm at £56.6m, is the third bid that Ecotricity has made for the Chippenham-based company.
The bid offers a 18.9 per cent premium on Good Energy’s closing price on 1 July. However, Good’s board rejected it on 8 July.
Shares in Good Energy jumped 10.6 per cent to 340p as markets reacted to this morning’s announcement.
In a statement, the firm’s board said the offer was “inadequate and fundamentally undervalues the group and fails to recognise the intrinsic value of the group’s shares”.
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.”
Ecotricity has been pursuing its fellow renewable power firm since the middle of June, with both of its initial offers rejected.
It already owns 25.1 per cent of Good Energy, but is now seeking to bring its whole stock under its control.
It said that there is no certainty any formal offer will be made for Good Energy. It has until 9 August to make a formal offer or walk away from its pursuit.
In response to Good Energy’s statement, Ecotricity founder Dale Vince said: “We are aware of the Board’s view, and are now interested in the view of our fellow shareholders.”
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