28th Jan 2025. 10.18am

Regency View:

TAKE PROFITS Good Energy (GOOD)

Regency View:

TAKE PROFITS Good Energy (GOOD)

Close Good Energy (GOOD) at market 479p

Good Energy’s shares have rallied significantly since Esyasoft’s 490p per share bid was announced, with the offer representing a substantial premium to the pre-bid price. The acquisition is structured as a cash offer, valuing the company at £95.8 million, and reflects Esyasoft’s belief in the long-term potential of Good Energy’s renewable energy strategy. While the bid still requires shareholder and regulatory approval, the market reaction suggests confidence that the deal will be completed, as the shares are trading just below the offer price at 479p.

We believe now is the right time to take profits for several reasons. The current share price leaves less than 2.5% upside to the bid price, which we view as insufficient given the risks of holding through the completion process. While the acquisition appears likely to proceed, regulatory or procedural delays could impact the timeline, and there remains a slim chance the deal could fall through. By exiting now, we can secure an excellent return of more than 38% while avoiding potential complications or prolonged uncertainty.

Profit = 38.5%

GOOD Daily Candle Chart

GOOD Daily Candle Chart

Disclaimer:

All content is provided for general information only and should not be construed as any form of advice or personal recommendation. The provision of this content is not regulated by the Financial Conduct Authority.