Ecotricity makes several indicative offers for Good Energy

The privately-held company already holds 25.1% of the AIM-traded Good Energy, and said its third, most recent offer was set to be satisfied solely in cash from its existing resources.

It said the third indicative offer was made on 2 July, and was rejected by the board of Good Energy on 8 July.

The third indicative offer, at 340p per share, represented a premium of 18.9% to the closing price of 286p per Good Energy share on 1 July, 10.6% to the closing price of 307.5p on 9 July, 26.6% to the volume-weighted average closing price of 268.5p for the three months to 9 July, and 59.4% to the volume-weighted average price of 213.3p for the year to 9 July.

Ecotricity said its first non-binding indicative offer of 310p per share was made on 15 June.

“At the time, the offer represented a premium of 10.1% to the closing price of 281.5 pence per Good Energy share on 14 June,” the Ecotricity board said in its statement,

“The first indicative offer was rejected by the board of Good Energy on 18 June.”

Ecotricity's second non-binding indicative offer of 330p per share was made on 24 June, and at the time, it represented a premium of 16.4% to the closing price of 283.5p per Good Energy share on 23 June.

“The second indicative offer was rejected by the board of Good Energy on 29 June.”

Ecotricity said it believed that an offer at 340p per share would represent “compelling value”, and could give Good Energy shareholders the opportunity to sell their shareholding for cash.

Under the City Code on Takeovers and Mergers, Ecotricity would be required to either announce a firm intention to make an offer for Good Energy, or confirm that it did not intend to make an offer, by close of trading on 9 August.

That deadline could be extended with the consent of the Takeover Panel.

Following Ecotricity’s announcement, Good Energy said its preliminary reasons for rejecting the possible offer were that it was “inadequate” and “fundamentally undervalued” the group, “failing to recognise the intrinsic value” of its shares.

It said Good Energy's shareholders were not being offered close to what it called a “full premium” for giving up control of the company.

“The group has demonstrated its ability to deliver value to its shareholders, and is committed to continuing to do so,” the Good Energy board said.

Its directors added that they would make a further announcement outlining the reasons the board was rejecting the possible offer in more detail.

“Good Energy and its subsidiary Zap-Map have an extremely healthy, independent future focused on the best interests of our customers, employees and shareholders,” said chair Will Whitehorn.

“We are committed to delivering growth for the exclusive benefit of our shareholders, not Ecotricity's.”

At 1137 BST, shares in Good Energy Group were up 7.15% at 329.5p.