Good Energy shares soar as takeover agreed

Good Energy has announced an agreement with smart grid technology specialist Esyasoft Investment Holding for a recommended cash offer to acquire Good Energy, valuing the renewable energy provider at £99.4 million.

Good Energy has become the latest UK-listed company to agree to a takeover by an overseas entity after receiving a revised proposal that values Good Energy’s share at a significant premium to levels before Esyasoft’s proposed takeover was announced.

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Under the terms of the deal, Good Energy shareholders will receive 490p in cash for each share, representing a substantial 66 per cent premium to the company’s closing price of 295 pence on 25 October when Good Energy initially announced Esyasoft’s interest.

Good Energy, which was founded 25 years ago, has transformed from a pure renewable electricity supplier into a comprehensive clean energy services provider, offering solar panel installation, heat pumps, and EV charging solutions.

Esyasoft, which already serves more than 25 million consumer meter connections globally, said it sees strong strategic alignment with Good Energy’s business model. Esyasoft also probably saw deep value in Good Energy’s share price that wasn’t properly appreciated by the market.

Esyasoft said they believe there is significant potential to expand Good Energy’s customer base and establish it as a market leader in the UK, with possibilities for international expansion in markets where Esyasoft already operates.

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For Good Energy, the acquisition offers a solution to its capital constraints. The company’s board has acknowledged that while it remains confident in its independent future, limited access to capital in UK public markets has restricted its growth potential. The deal would provide Good Energy with the financial resources needed to pursue larger power purchase agreements and continue its acquisition strategy in the fragmented solar and heat pump installation market.

Esyasoft’s parent group brings substantial financial backing to support Good Energy’s expansion plans, including the development of its 49 per cent stake in Zapmap, a leading EV charging app that serves nearly one million registered users and requires further investment from early 2025.

Good Energy is yet another high-quality UK-listed company that has been snapped up by an overseas firm.

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