Ecotricity has made a new higher offer in its takeover pursuit of fellow green energy supplier Good Energy, after a series of rejected offers since June.
The latest cash offer, announced this morning, is at 340 pence per share, valuing the Chippenham-based company at around £59.5m.
It marks a rise on Ecotricity’s initial indicative offer made on June 15 at 310 pence per share.
Good Energy Group’s stock fell 1.2 per cent in early trade following the news.
Ecotricity Group, which reported a turnover of £230m for the year ended 30 April 2020, pointed to Good Energy’s “deteriorated” finances over the last few years.
Good Energy reported revenues of £131m for the year ended 31 December 2020.
Despite a rise in Good Energy’s share price over the last few months, Ecotricity said the company is in an “accelerated” decline and the increasing share price was not “underpinned by any fundamental changes in the business.”
Ecotricity already owns around a quarter (25.1 per cent) of Good Energy shares.
Gloucestershire-based Ecotricity said the deal would allow the two companies to “create a green energy supply entity of more significant scale” to be able to better compete with the “raft” of new entrants in the increasingly competitive green energy market.
If the offer is accepted Ecotricity said the two companies would continue to operate as separate brands within the market with no changes to the headquarter locations or operations of either.