(Sharecast News) - Ecotricity Group made good on its announcement of a possible officer for Good Energy Group on Thursday, confirming the terms of a cash offer for the AIM-traded renewable energy company.
The company, which already owns 25.1% of Good Energy, said it was offering 340p in cash per share.
That valued Good Energy's issued and to-be-issued share capital, excluding its current shareholding, at around £45.3m, and the entire share capital at about £59.5m.
The offer remained conditional on valid acceptances being received from shareholders representing at least 50% the voting rights of Good Energy shares, including those already owned by Ecotricity.
Good Energy's directors were quick to respond to the "hostile bid", however, saying in a statement on Thursday afternoon that the offer "significantly" undervalued the group and its future prospects.
It reiterated its "unanimous and unequivocal" rejection of the offer, which it initially stated following Ecotricity's announcement of a possible offer earlier in the month, "strongly" advising shareholders to take no action.
Good Energy's board said it would write to shareholders with its formal response, once the offer document was posted.
"We firmly reject this highly opportunistic and hostile offer by a direct competitor to the company," said Good Energy chairman Will Whitehorn.
"The board believes the offer is not in the best interests of our shareholders as a whole, nor is it in the best interests of our employees and customers."
Whitehorn said Good Energy had a "clear" growth strategy, a "strong" leadership team and a "proven track record" of delivering on objectives.
"We are disappointed to see Ecotricity pressing ahead with its offer regardless of the board's unequivocal and unanimous rejection."
At 1445 BST, shares in Good Energy were flat at 324p.
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