Ecotricity has reiterated its ambitions to take over green rival Good Energy, making a new £53 million offer for the shares it does not already own in the company.
The Dale Vince-founded company revealed in July that it had made three non-binding bids to take over Good Energy, all of which had been rejected.
It later issued a £45 million cash offer to buy the 75 per cent of shares it does not already own in Good Energy.
The company’s latest offer, announced today (16 September), of 400p per share is an increase of 60p and values Good Energy at nearly £70 million.
Ecotricity further revealed that it has received valid acceptances of its original 340p offer in respect of a total of 345,004 Good Energy Shares, representing approximately 2.1 per cent of the shares in issue as of 1pm yesterday.
Shareholders who previously accepted the offer, Ecotricity said, will automatically be deemed to have accepted the terms of the increased offer.
Earlier today, before the increased bid was made, Good Energy issued a further statement rejecting its rival’s offer.
Will Whitehorn, company chair, said: “As reported on 14 September in our interim results, a gross profit increase of 19.4 per cent and gross profit margin of 25.9 per cent show a strong, consistent and stable business – contrary to the assertions made by Ecotricity.
“The board believes that the company’s financial performance clearly demonstrates that Good Energy is successfully delivering on its strategy.
“Good Energy has shown strong growth in the first half of this year, and the nature of the rapidly growing markets in which the company operates – clean energy and transport – mean there is significant headroom for more.
“This is in stark contrast to Ecotricity, which has been loss-making for the past four years – demonstrating how unfit an owner Ecotricity would be for Good Energy.
“This hostile offer, if successful, would risk severely damaging the company’s potential for further growth, and deny our investors the opportunity to be a part of it.
“The board reiterates our unanimous recommendation to reject the offer, by taking no action.”
A spokesperson for Good Energy said it will comment on the latest offer “in due course”.
In a response document to Good Energy’s recent statements, Dale Vince rejected claims the offer is “hostile” and insisted Ecotricity was not hostile to the company, its staff, customers or shareholders.
He added: “When we approached the board we believed shareholders should be made aware of our interest, to be able to choose for themselves. The board were not willing to inform shareholders so we did.
“When we first approached the board (on 15 June 2021) the share price was £2.82, our offer of £3.40 was a 20.6 per cent premium to this and a 70.9 per cent premium to the average of the previous 12 months.
“The board rejected our offer, with the claim it significantly undervalues the company – but they have offered no credible plan to do better for shareholders.
“Performance of the past five years….. suggests they are not capable of achieving better for shareholders. We have increased our offer today to £4.00. And we invite the board to enter into a dialogue with us in the interests of all shareholders.”