Good Energy greenlights Esyasoft takeover bid: Dubai-based, HIC-backed tech company Esyasoft Investment Holding is a step closer to acquiring 100% of AIM-listed renewable energy supplier Good Energy through a bolt-on transaction, after Good Energy accepted the bid as a fair value, according to a regulatory filing to the London Stock Exchange (LSE) on Monday.

The acquisition prices Good Energy shares at GBP 4.90 apiece, valuing the transaction at GBP 99.4 mn, and implying an enterprise value at GBP 67.8 mn. The offer represents a 66% premium to Good Energy’s share price (GBP 2.95), the day before Esyasoft first expressed its interest in acquiring the company late last year. Esyasoft reserves the right to slash the offer price if Good Energy announces any dividends or distributions before the transaction is finalized.

EXPLAINER- While there’s no information about the reason the enterprise value is lower than the transaction value, it could be attributed to the debt obligations of Good Energy and / or its cash and cash-equivalent assets — these are non-operation assets that are not factored into enterprise valuation.

What’s next? The sale is expected to be finalized in 1H 2025, with the scheme document, detailing the transaction mechanism, set to be published within 28 days of the regulatory filing made on 27 January — which by Monday, 24 February, in our calculation. Upon court approval, Good Energy will delist from the LSE’s parallel market AIM and re-register as a private limited company.

Esyasoft to work on the value appreciation of Good Energy: Esyasoft plans to expand Good Energy’s solar installation and maintenance services, boost its offerings both locally and internationally, while helping it grow its EV charging app of its portfolio company Zapmap, and supporting its entry into new markets.

Market reax- Good Energy’s shares soared by over 23% after the news and sustained the rise over the last five days, closing at 480 points at yesterday’s close.

A snapshot of Good Energy earnings + operations: Good Energy’s net income fell 78% y-o-y to GBP 2.6 mn in 1H 2024, while its revenue was down 38% to GBP 97.4 mn, according to its latest earnings report (pdf). It works with over 2.5k independent renewable generators offering solar panel installations, heat pumps, and EV charging. It currently serves over 245k customers in the UK, enabling them to generate, store, and share renewable energy independently.

ADVISORS- Esyasoft tapped Dean Street as its financial adviser on the transaction, while Good Energy tapped Canaccord Genuity for financial adviser and joint broker.

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