Australia's Origin Energy has announced a 3% increase in its ownership stake in UK-based renewable energy company Octopus Energy, bringing its total interest to 23%. The investment, totaling £280 million ($354.12 million), positions Origin alongside existing major investors, Canada Pension Plan Investment Board (CPP Investments), and Generation Investment Management (GIM).
As part of this capital infusion, CPP Investments is set to invest £300 million, elevating its stake in Octopus from 6% to 11%, while GIM will contribute £45 million, maintaining its current interest of around 10%. The capital raise values Octopus at £5.6 billion, marking a substantial 60% increase in the company's worth since December 2021, according to Origin's statement.
See also: Octopus Energy Generation Commits $20 Billion Investment in Offshore Wind by 2030
Octopus Energy has emerged as the second-largest energy retailer in the UK, with its Kraken platform contracted to serve more than half of the country's households and licensed in ten countries. Origin CEO Frank Calabria emphasized the significance of Octopus' platform in navigating the evolving landscape of the energy sector.
The transaction is contingent upon obtaining necessary regulatory approvals, with Origin's additional investment requiring the green light from the UK's Financial Conduct Authority, as stated by the company.
