Green power entrepreneur Dale Vince today brought forward a decision deadline for investors in rival supplier Good Energy, in a move seen by some observers as signalling his likely defeat.
Vince’s Ecotricity told investors this morning that it was bringing forward by two days to October 8 the deadline for investors in the Chippenham-based target to accept or reject Ecotricity’s offer of 400 pence per share.
In July the entrepreneur’s firm offered 340 pence per share to secure, valuing the target Good Energy at around £ 59.4 million
The first bid won Vince only marginally more of the rival’s equity, in which he already had a 25% stake. Today’s announcement to London investors confirms that the 400 pence bid increased on 16 September only by another 2.6%, bringing Ecotricity’s stake to only 27.6%.
Cotswolds AONB aggro
Good Energy’s directors have firmly rebuffed both bids, telling investors to reject them by sitting tight and doing nothing.
Citing today ”continuing uncertainty in the energy market with soaring prices and supplier failures”, Ecotricity said it wished to “bring its increased bid to a conclusion as soon as possible”.
Good Energy’s latest returns put its accounts total at 274,600, including 142,900 business customers. For the six months to June, it posted pre-tax profits of £4.8 million on steady-state turnover of £68.4 million.
Both firms operate a ‘purist’ model of exclusively renewables-sourced power, drawing primarily on PPAs and supply agreements with independent wind and solar generators. For its gas retailing, Ecotricity pays to offset emissions from the 95% it buys in , thereby claiming carbon neutrality
Vince set up Ecotricity, a not-for-dividend enterprise, under its former name in April 1995. Good Energy was incorporated four years later. Ecotricity does not disclose customer numbers. It first bought shares in its rival in March 2016.