Good Energy, the British renewable electricity supplier, has agreed to a takeover deal worth close to £100m from Dubai-based Esyasoft, a company under the umbrella of Abu Dhabi International Holding Company (IHC).
The offer of £4.90 per share represents a two-thirds premium on Good Energy’s share price prior to Esyasoft’s initial approach, raising its market value to £99.4m.
Esyasoft is ultimately controlled by IHC, chaired by Sheikh Tahnoon bin Zayed al-Nahyan—part of Abu Dhabi’s ruling family—and has investments spanning fossil fuels and solar power. Although IHC is involved in oil and gas services, it also specialises in energy technology via Esyasoft, pointing to a wider strategy of diversifying its energy portfolio.
The deal is poised to deliver a sizeable payout for Dale Vince, Labour donor and energy entrepreneur who holds a 26% stake in Good Energy via his Green Britain Group. Co-founder Juliet Davenport, who retains a 2.7% holding, welcomed the takeover. “The investment will provide an opportunity to scale the Good Energy propositions,” she said, “and make a real difference to climate change.”
Founded in 1999, Good Energy supplies 100% renewable electricity to about 245,000 customers across the UK and offers solar panel, heat pump and electric vehicle charging services. It grew partly through the acquisition of a wind farm developed by Martin Edwards, another shareholder with a 7.3% stake.
Esyasoft is pledging to leave Good Energy’s operations “materially the same” for at least six months. It intends to channel new resources into expanding the firm’s solar installation and maintenance activities, marketing services internationally, and seeking greater profitability for electric car charging app Zapmap.
Chief executive Nigel Pocklington said partnering with Esyasoft presents an opportunity to accelerate Good Energy’s mission and exploit new markets where the UAE-based firm already operates.
The final takeover depends on shareholder approval, but with the Good Energy board’s endorsement and a sizeable premium on shares, the deal appears set to cement a fresh era of growth and international expansion for the UK green energy pioneer.
