Good Energy Group PLC (AIM:GOOA) said it rejected a takeover bid from major shareholder Ecotricity Group Ltd, branding the approach a "hostile and highly opportunistic offer” that significantly undervalues the company.
Privately owned Ecotricity’s offer of 340p per share cash, made on 22 July, followed previous approaches worth 310p and 330p. Good Energy has repeatedly rejected the bid. Ecotricity owns a 25.1% stake in Good Energy.
Good Energy said Ecotricity's bid significantly undervalues the company and does not take into account its potential for growth. As a result it reiterated its “strong recommendation" to shareholders to reject the offer by taking no action.
It highlighted recent interim results, which showed a gross profit increase of 19.4% and gross profit margin of 25.9% and said the figures show Good Energy is “a strong, consistent and stable business - contrary to the assertions made by Ecotricity”.
Will Whitehorn, chair of Good Energy, said: "Good Energy has shown strong growth in the first half of this year, and the nature of the rapidly growing markets in which the company operates - clean energy and transport - mean there is significant headroom for more.
"This is in stark contrast to Ecotricity, which has been loss-making for the past four years - demonstrating how unfit an owner Ecotricity would be for Good Energy.
"This hostile offer, if successful, would risk severely damaging the company's potential for further growth, and deny our investors the opportunity to be a part of it.”
Shares in Good Energy were up 1.8% at 335p.