Just 1.8% of Good Energy shareholders have accepted rival supplier Ecotricity's cash offer for shares in the company.
The company already held 4,169,948 Good Energy Shares – approximately 25.1% - and issued an offer of 340p per share for the entire issue of its share capital on 22 July. This valued the company at £45.3 million excluding the shares it already owns, or £59.6 million when included.
Good Energy repeatedly criticised the bid, arguing that it undervalued the company while further suggesting Ecotricity would be an “unfit owner with an unsuitable plan". As such, the company’s board strongly urged its shareholders to reject the offer.
“The board firmly rejects this highly opportunistic and hostile offer and does not agree that the takeover of Good Energy by a loss-making competitor would help the company compete more effectively in the energy market,” said Will Whitehorn, chair of Good Energy stated in August.
Ecotricity has now received valid acceptances of 297,084 Good Energy shares, bringing its stake in Good Energy up to approximately 26.8% of the company, it confirmed in a filing to the London Stock Exchange today (2 September).
The cash offer follows three indicative offers to Good Energy, all three of which were rejected by Good Energy’s board.
Current± has approached Ecotricity for comment.