Octopus Energy Group, the largest gas and residential electricity supplier in Great Britain, plots a department of 10 billion pounds sterling in its technological arm which would strengthen its status from one of the most precious private companies in the country.
Sky News can exclusively reveal that Octopus Energy is about to hire investment bankers to officially help Kraken technologies from the rest of the group.
The Demerger, which should take place over the next 12 months, would see existing investors of Octopus Energy to have received shares in the new independent Kraken company.
A minority participation in Kraken up to 20% should be sold to external shareholders to help validate the evaluation of the technological platform, according to initiates.
A banking source said Kraken could be estimated up to $ 14 billion (10.25 billion pounds sterling) in an upset.
Citi, Goldman Sachs, JP Morgan and Morgan Stanley are among the investment banks invited to present the Demerger mandate in recent weeks.
An agreement will increase the paper fortune of the CEO of Octopus Energy, Greg Jackson, and will highlight its success in the construction of an important British company worldwide in the last decade.
Octopus Energy now has 7.5 million retail customers in Great Britain, following its bundle of the energy supplier in 2022 and the subsequent acquisition of the Domestic Energy activity of Shell.
In January, he announced that he had become the largest supplier in the country – exceeding British gas centered on the center – with a market share of 24%.
It also has an additional 2.5 million customers outside the United Kingdom.
Kraken is an operating system authorized to other energy suppliers, water companies and telecommunications suppliers. Pic: Octopus
Sources have indicated that an assessment of 10 billion sterling pounds from Kraken would now imply that the whole group, including the supply of supply in detail, was worth the region of 15 billion pounds sterling or more.
It would be double its valuation a little over a year ago, when the company announced that it had obtained new support from the Galvanize Climate Solutions and Lightrock funds.
Shortly before that, the former US vice-president Al Gore, General Investment Management, and Canada Pension Plan Investment Board increased their participations in Octopus Energy in a transaction assessed the company to $ 9 billion (7.2 billion pounds Sterling).
Kraken is an operating system authorized to other energy suppliers, water companies and telecommunications suppliers.
It connects all parts of the energy system, including the billing of customers and the flexible management of the renewable generation and energy devices such as heat pumps and electric vehicle batteries.
The company also unlocks intelligent networks that allow people to use more renewable energies when there is an abundant supply.
In the United Kingdom, its platform is authorized to the rivals of Octopus Energy Eon and EDF Energy, as well as to the SEVERN Trent water company and to the CUCKOO wide-band supplier.
Abroad, Kraken serves the original energy in Australia, Tokyo gas in Japan and fullness in countries like France and Greece.
His biggest coup came recently, when he concluded an agreement with National Grid in the United States to serve 6.5 million customers in New York and Massachusetts.
Sources have said that other major license agreements in the United States should be struck in the coming months.
Kraken, who is chaired by Gavin Patterson, the former managing director of the BT group, is now contracted with more than 70 million customer accounts worldwide – easily putting it on the right track to reach a goal of 100 million by 2027.
Earlier this year, Jackson said the goal was now likely to be considered “embarrassing without ambitious”.
Last July, Kraken recruited Amir Orad, a former boss of Nice Actimize, a supplier of company software classified by the United States to world banks and fortune companies 500, as first managing director.
A Kraken disturbance will trigger speculation on a possible list of public procurement of the company.
Its growth in the United States and the relative assessments of the public market for technological companies in New York and London could put the United Kingdom in disadvantage when Kraken finally considers where to list.
One of the main advantages of disengaging Kraken from the rest of the Octopus energy group would be to remove the perception of a conflict of interest from the potential customers of the technological platform.
One source said that the unified property of the two companies had given a means of deterrent to certain energy suppliers.
Kraken was also diversified beyond the energy sector, and earlier this year, joined a consortium that explored a redemption for the water from the Thames.
This weekend, Octopus Energy refused to comment.