Good Energy repels Ecotricity in shareholder showdown
Good Energy Group (Good Energy) has fended off attempts from activist investor Ecotricity to oust its chairman and prevent the supplier from selling generation assets.
Shareholders voted against resolutions filed by Ecotricity last December in a requisitioned general meeting today.
Chairman William Whitehorn has held on to his position with a 58-42 per cent result, while the special resolution to block the sale of assets was defeated by a 14 point margin.
Ecotricity is both a rival domestic energy firm, and 25 per cent stakeholder in Good Energy.
It opposes the supplier’s decentralised strategy, focused on buying power from renewables generators for 175,000 customers rather than building and operating its own infrastructure.
Last month, Good Energy fanned the flames through the offloading of a 47.5 megawatt renewable estate to Bluefield Solar in a £25m deal.
This also follows previous attempts from the supplier to take over Good Energy being knocked back by shareholders.
Good Energy’s chief executive Nigel Pocklington was bullish about the outcome, considering it a vote of confidence in the firm’s strategy amid activist pressure.
He said: “Once again our shareholders have dismissed the disruptive actions of one shareholder and competitor and its misleading statements. In our view, this result represents a huge endorsement of our strategy — helping individuals and companies play a part in the clean energy transition. With this process behind us, that’s what we plan to focus on delivering.”
Ecotricity’s founder Dale Vince argued the results reflected a lack of shareholder confidence in Good Energy and criticised the functioning of the company.
He explained: “In a properly run listed company this issue would have been put to shareholders properly and not in the reluctant, rushed and prejudiced form that it was. Shareholders would have had a fair say. The board should now consider their positions. They barely have the support of half of all shareholders. That’s untenable.”
However, Pocklington dismissed this interpretation, and rubbished the suggestion shareholders were questioning the company’s strategy.
He said: “This is utter nonsense. Aside from one individual shareholder, the Good Energy shareholders have once again clearly demonstrated their support for our board and strategy.”
Following the announcement, shares in the company were down 2.83 per cent on the FTSE Aim All-Share at close of play.