Good Energy sees off hostile bid by eco-rival
A battle of eco power suppliers looks to be over for now – with Ecotricity failing in its hostile bid to take over Chippenham-based Good Energy.
Stroud-based Ecotricity made an offer to Good Energy shareholders back in July of 340 pence per share. In September it increased its offer to 400 pence per share – valuing its Wiltshire rival at £53.3 million.
Ecotricity, which already owned 25.1 percent of Good Energy’s shares, managed to receive acceptances of a further 6.5 percent – not enough to fulfil its takeover ambitions before the offer lapsed on Friday (October 8).
Will Whitehorn, chairman of Good Energy, said: “In the current turbulence of the wider energy market caused largely by fossil fuel prices and scarcity, the company’s strategy for digitised, localised clean energy and electric vehicle services is more relevant and more urgently needed than ever.
“We consider the rejection of the hostile offer a resounding endorsement of that from shareholders and are now fully focussed on delivering our vision with their backing.”
The company addressed the current turbulence in a statement this morning (Monday) assuring shareholders that there was no change to its full year expectations.
“The Company is taking a very cautious stance in the current environment and implementing a prudent approach to risk management,” said a statement.
“The Company is over 90 percent hedged for the next 12 months, weighted to this coming winter, which limits exposure to the current price volatility in the UK domestic energy market.
“We continue to steer clear of the price war in the domestic supply market, with limited reliance on price comparison sites.”
CEO Nigel Pocklington (pictured) added: “Despite the recent volatility in wholesale energy prices, we remain positive on the long-term opportunity in our chosen markets.
“Recent electric vehicle sales data proves the acceleration of adoption and reinforces the scale of opportunity for Good Energy in this market.
“Zap-Map continues to have an exciting future as the leading EV mapping platform. We look forward to continuing to invest in the EV market and supporting Zap on the next stage of its journey.
“The challenges within the UK energy sector have been well documented, but – with 20 years’ experience – we remain differentiated through strong governance, a prudent approach to risk management and a genuinely differentiated green product.
“Now that Ecotricity’s cash offer has lapsed, I am pleased to be re-starting the dividend for our loyal shareholders.
“We reiterated our intention to resume the dividend this year and intend to maintain a progressive dividend policy.
“This evidences our continued commitment to all our stakeholders and progress in delivering Good Energy’s strategy.”
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