Ecotricity Group Proposes GBP56.6 Mln Takeover for Good Energy — Update

By Ian Walker

Ecotricity Group Ltd. said Monday that it has submitted three offer proposals to the board of Good Energy Group PLC that have been rejected, with the latest one valuing the renewable-energy company at 56.6 million pounds ($78.7 million).

Ecotricity said its latest offer proposal was made on July 2 at 340.0 pence in cash for each share but this was rejected on Thursday. The offer price was an 11% premium to Good Energy’s closing price of 307.50 pence on Friday. Ecotricity is Good Energy’s largest shareholder with a 25.1% stake.

The first indicative offer was 310.0 pence in cash and made on June 15, Ecotricity said.

Good Energy said Monday that it rejected the latest offer as it was “inadequate and fundamentally undervalues the group.” The company also said that the offer price failed to recognize the intrinsic value of its shares and advised shareholders to take no action over the possible offer.

“Good Energy and its subsidiary Zap-Map have an extremely healthy, independent future focused on the best interests of our customers, employees and shareholders. We are committed to delivering growth for the exclusive benefit of our shareholders, not Ecotricity’s,” Chairman Will Whitehorn said.

Ecotricity said there is no certainty that any formal offer will be made for Good Energy. It has until Aug. 9 to make a formal offer or walk away under U.K. Takeover Panel rules.

Shares at 1005 GMT were up 22.50 pence, or 7.3%, at 330.0 pence.

Write to Ian Walker at ian.walker@wsj.com