Major shareholder makes Inspired takeover bid

Kirkham headquartered energy and sustainability specialist Inspired has received a cash offer valuing the business at almost £110m in a takeover bid by one of its major shareholders.

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

Regent Acquisitions has made a cash offer of 68.5 pence for every share its wider group doesn’t hold, valuing the business at £109.35m. Regent currently holds around 29.36 of Inspired’s issued ordinary share capital.

Regent, established in 1995, is a leading supplier of gas and metering services to industrial and commercial customers in the UK.

The group provides services to large consumers of gas across a range of sectors including, leisure, care homes, manufacturing, food production and retail. It intends to retain Inspired’s AIM listing.

It said in a statement: “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.”

If its takeover is successful Regent plans 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.