Good Energy has agreed to a sweetened £99.4 million takeover by a company with links to the United Arab Emirates’ royals.
Dubai-based Esyasoft will pay 490p a share for Good Energy after upping its bid, which comes after the deadline for a firm offer was extended three times.
Esyasoft first told bosses at Good Energy that it was weighing up a 412p-a-share offer in late October.
Good Energy – which is based in Chippenham, Wiltshire, and supplies electricity to UK homes and businesses – described the approach at the time as an “unsolicited” advance which did not reflect the future growth opportunities of the firm.
But on announcing the agreed takeover it said it is “a good deal which will ramp up the company’s renewable purpose”.
Today we have an opportunity with a partner that shares our sustainable energy vision and has the resources to accelerate our purpose substantially
Chief executive Nigel Pocklington said: “Today we have an opportunity with a partner that shares our sustainable energy vision and has the resources to accelerate our purpose substantially.
“Whilst the board remains confident in Good Energy’s strategic delivery as a publicly listed company, Esyasoft’s financial resources, in addition to its presence in new markets, present a significant increase in our potential.”
Juliet Davenport, founder and former chief executive of Good Energy, said: “I founded Good Energy 25 years ago to be a pioneer in the provision of clean power to all customers in the UK.
“The energy industry back then was very different, founded around fossil fuels and designed to be a centralised system.
“This new investor for Good Energy offers an opportunity to scale the Good Energy propositions leading the decentralised and flexible clean power offering for the prosumers of the future to make a real difference to climate change.”
The deal still has to be approved by shareholders but, if given the green light, it is set to complete in the first half of 2025.
Esyasoft describes itself as a leader in “smart grid” technology.
It says it uses artificial intelligence and other data-based technology to modernise the power grid.
Previous stock exchange filings indicate it is controlled by the Abu Dhabi International Holding Company (IHC).
The Abu Dhabi IHC’s chairman is Sheikh Tahnoun bin Zayed Al Nahyan, the son of the UAE’s founder and part of the Abu Dhabi ruling dynasty.
We have a strong track record of supporting businesses involved in critical energy infrastructure and climate technologies, and therefore our portfolio of services is highly complementary to Good Energy's
Good Energy was founded in 1999 and now has about 275,000 customers across the UK.
It is not one of the so-called Big Six major power suppliers, but directors were included in industry-wide talks with Labour’s energy consumers minister, Miatta Fahnbulleh, at the end of August about how firms can support bill-payers.
Its shares jumped 22% on Monday morning on news of the deal, having already surged by nearly 65% over the past six months, driven by Esyasoft’s bid interest.
Bipin Chandra, chief executive and founder of Esyasoft, said: “We have a strong track record of supporting businesses involved in critical energy infrastructure and climate technologies, and therefore our portfolio of services is highly complementary to Good Energy’s.
“We believe that, through our strategic partnership, we can support Good Energy in accelerating delivery of its purpose and growth ambitions by realising the extensive opportunities that exist for this business both in the UK and internationally.”
