Inspired board reject takeover bid from major shareholder

The board of Kirkham headquartered energy and sustainability specialist Inspired has rejected a takeover bid from a major shareholder valuing the business at £110m.

And it has revealed that investors holding more than 49.15 per cent of its shares had turned down the unsolicited cash offer saying it “fundamentally undervalues” the business.

Those investors include Gresham House Asset Management, which holds or controls almost 30 per cent of Inspired shares.

In its statement the Inspired board said: “It believes Regent’s Offer fundamentally undervalues Inspired and that it has no current intention to accept the offer.”

Five other major investors and all of Inspired’s directors have since followed. 

In an earlier statement the Inspired board said it had not been approached by Regent prior to its offer announcement. It added: “The board unanimously believes that the offer fundamentally undervalues Inspired.”

Announcing the offer last week, The Regent Group, a long-term shareholder in the business since its AIM flotation in November 2011, said it was looking to place cash generation and debt reduction at the heart of the business’ strategy.

Regent, established in 1995, is a leading supplier of gas and metering services to industrial and commercial customers in the UK. It currently holds around 29.36 per cent of Inspired’s issued ordinary share capital.

In its statement it said: “The Wider Regent Group has historically been a supportive shareholder.

“However, it has believed for some time that the Inspired Group’s debt levels are too high and has raised concerns for some time, including by voting against the payment of the final dividend at the company’s Annual General Meeting held on 28 June 2024.”

It added: “Regent would like Inspired to implement initiatives that place cash generation and debt reduction at the heart of its strategy and feels the only way this can be achieved by the end of 2026 is by increasing its ownership of Inspired.”

Regent said if its bid was successful, it would launch a six-month strategic review of Inspired’s business, organisational structure, key functions, processes and systems.

Its statement said: “From this review Regent expects the board to identify the potential efficiencies and cost savings which will assist the board in determining how best to reduce the group's debt burden with the intention of eliminating it by the end of 2026.”

It added: “Regent believes that an outcome of the strategic review may result in material changes in employee and management headcount. It is expected that proposals regarding incentivisation arrangements for management and employees of the group will also be considered.”

Regent says it intends to keep Inspired’s current headquarters and HQ functions, operations and places of business.

Inspired’s services range from utility data management and procurement to consumption reduction and intelligent ESG strategies. It offers a wide range of integrated sustainability solutions through its four divisions