(Alliance News) - Good Energy Group PLC on Thursday said a takeover bid made by Ecotricity Group Ltd "significantly undervalues the company and its future prospects".
The renewable electricity supplier reiterated its unanimous and unequivocal rejection of the offer.
Early on Thursday, green energy supplier Ecotricity made a 340 pence a share cash offer for Good Energy. The stock closed up 0.3% in London on Thursday at 324.96p a share, giving it a market capitalisation of GBP54.1 million.
The offer values Good Energy - excluding Ecotricity's shareholding - at GBP45.3 million and the entire issued capital of Good Energy at GBP59.5 million.
Ecotricity currently holds 4.2 million Good Energy shares, representing 25% stake. The consideration payable under the offer will be funded out of Ecotricity's existing cash resources.
"We firmly reject this highly opportunistic and hostile offer by a direct competitor to the company. 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. We have a clear growth strategy, a strong leadership team and a proven track record of delivering on our objectives," said Chair Will Whitehorn.
"We are disappointed to see Ecotricity pressing ahead with its offer regardless of the board's unequivocal and unanimous rejection," added Whitehorn.
The first bid saw Good Energy offered 310.0p per share, before this was increased to 330.0p per share in the second offer. The third offer was raised to 340p a share.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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Good Enrg (GOOD)