Electric vehicle charging point maker Pod Point looks set to be sold to EDF after a sharp slowdown in demand hurt sales last year.
The London-listed firm delayed the publication of its annual results and announced the suspension of its shares from listing and trading from 1 May, as it revealed a takeover bid from the French multinational utility group.
EDF already owns 53 per cent of Pod Point and it intends to buy the rest of the firm at 6.5p per share, reflecting a premium of around 18 per cent to the closing price on Wednesday.
Pod Point, one of the UK's biggest charging firms, has lost more than 97 per cent of its value since listing on the London Stock Exchange at 218p per share in November 2021.
Shares fell by around a third in January after Pod Point revealed a slowdown in demand for battery-powered cars had led to 2024 revenues of just £53million – well below the £60million it was expecting.
Pod Point also warned results for 2025 are set to be lower than anticipated as ‘ongoing weakness’ in electric cars sales dents demand for charging points at drivers’ homes.
Out of fuel: Pod Point says EDF takeover is 'better option' for shareholders as it needs 'substantial new capital'
And earlier this month Pod Point flagged impairments it expects to drive an adjusted earnings loss £8million to £22million higher than the £14million loss guided at the start of the year.
Pod Point told investors on Thursday that EDF’s offer represents ‘the better option’ for shareholders, creditors and other stakeholders, with the group having explored alternative funding options.
The group highlighted a ‘backdrop of tough competitive conditions in the EV charger market’.
It said: ‘The company needs to have a more sustainable capital structure, and this requires substantial new capital in order to execute its strategy.’
Under City rules, EDF has until 5pm on 22 May to announce a firm intention to make an offer for Pod Point or walk away.
Pod Point shares were up 16 per cent to 6.08p by early afternoon.
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