Ecotricity boss attacks green energy firm’s board
ECOTRICITY owner Dale Vince has criticised the board of another green energy company he has been trying to buy over its plans to sell off its renewable power generation assets.
In a strategic outlook and trading update released last week, Chippenham-based Good Energy announced it was putting its entire 47.5MW generation portfolio, valued at £56.8m, up for sale.
AIM-listed Good Energy said the sale was part of its ongoing shift towards decentralised energy and mobility services, driven by further investment in its electric vehicle (EV) mapping platform Zap Map.
The company said it had appointed KPMG as financial advisor regarding the disposal and that it anticipates completion of the process during Q1 2022.
Good Energy said it intends to participate in an anticipated £7m funding round for Zap Map, to support the platform’s expansion in the UK and overseas. It said the strategy would help it to capitalise on a “rapidly growing market” in decentralised, digitised clean energy and transport services based on 100% renewable power.
The company said the strategic direction had received strong shareholder support, following the lapse of what it called a “hostile takeover” attempt by Gloucestershire-based businessman Mr Vince, the chairman of Forest Green Rovers football club.
Ecotricity had made an improved offer to acquire Good Energy for 400p a share, as part of a proposed buyout worth around £70m, including the shares it already owns in its competitor, which amount to around 25%.
In October, Good Energy said that the bid had lapsed after it was accepted by shareholders representing 36.5% of the company - short of the 50% required.
In a response released on Tuesday to Good Energy’s statement last week, Mr Vince slammed Good Energy’s board of directors, claiming it had advised shareholders to reject his company’s offer. The Good Energy board said in August, Ecotricity’s takeover bid had “significantly undervalued” the business and its longer-term prospects.
Mr Vince claimed Good Energy shareholders were not informed by its board during Ecotricity’s takeover bid about what he described as plans to “break up the business”. He said the decision to sell off the renewable generation portfolio could lead to Good Energy share prices being worth “substantially less” than Ecotricty’s offer.
Mr Vince, pictured, said: “Shareholders should have been offered the two alternatives for the business - combine with Ecotricity and double-down on building new forms of green energy, or have the business broken up to focus on an EV app that has not turned a profit, or route to profitability.
“And they should have known that the year about to end would be far worse than expectations.”
He added: “The direction proposed by the board, doesn’t just harm Ecotricty’s investment in Good Energy - it harms all shareholders - that’s why shareholders must get a chance to vote on these plans.”
Good Energy did not respond directly to the comments but highlighted its trading statement, which said it was “accelerating” its transition from a renewable utility to an energy services provider.
Good Energy chief executive Nigel Pocklington said in the statement: “Good Energy has been at the forefront of the UK’s energy transition for over 20 years, stimulating the growth of renewable power generation. Our job is done as a developer and asset owner as we focus on the new frontiers - the electrification of transport and decentralised energy generation.
“Bigger investment in Zap-Map, will reinforce their market position and help deliver the products and services for EV drivers. We see significant opportunities to scale this business internationally.
“We are also increasing investment in a brand-new platform to better serve our decentralised energy customers. With one of the largest feed in tariff customer bases, we are investing in new products and services to better serve their needs.
“Whilst the retail energy market continues to experience some short-term challenges, we remain positive about the future. We will largely be a debt free company, with a strong balance sheet for growth.”