UK's Good Energy rejects increased offer by Ecotricity

UK green energy supplier Good Energy Group Plc (LON:GOOD) today rejected an increased hostile takeover offer by rival Ecotricity.

Ecotricity on Thursday announced a revised offer of GBP 4 in cash per Good Energy share, an increase from the original offer of GBP 3.4. The new bid values Good Energy's share capital at GBP 69.9 million (USD 96.7m/EUR 82.2m), or GBP 53.3 million excluding Ecotricity's 25.1% stake in the target.

Good Energy’s board recommended that shareholders turn down the offer by taking no action.

Good Energy said the revised proposal still undervalues the company and its longer-term prospects, and that it represents a premium of only 30.1% to its closing price on July 9, before the offer period.

"This week Good Energy announced strong profit growth for the first six months of 2021, a fact largely ignored by Ecotricity, but which clearly demonstrates that Good Energy is achieving momentum with its modern, digital strategy led by our new CEO,” Good Energy chair Will Whitehorn stated, adding that Ecotricity has been loss-making for four years running.

Good Energy reported underlying profit before tax of GBP 3.9 million, versus a loss of about GBP 500,000 a year earlier.

(GBP 1 = USD 1.383/EUR 1.176)

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