Octopus Energy is preparing to spin off its technology platform, Kraken Technologies, in a deal valued at £10 billion ($13.7 billion), according to a report by Sky News on Saturday citing unnamed sources.
The British energy company is said to be close to appointing investment banks to oversee the separation and minority stake sale, which is expected to take place within the next year. A stake of up to 20% in Kraken could be sold to external investors to help establish a market valuation for the platform, the report said.
As part of the demerger process, Octopus Energy’s current shareholders are expected to receive shares in the new, standalone Kraken entity. Based on the reported £10 billion valuation of Kraken, the overall Octopus Energy group — including its retail operations — could be worth at least £15 billion, according to the sources cited.
Kraken Technologies is Octopus’s proprietary cloud-based platform that supports energy billing, customer service, and grid management for utilities. The platform is used by several energy firms globally, including E.ON and EDF.
Neither Octopus Energy nor Kraken Technologies provided a comment in response to the report. Sky News noted that investment banks have recently been invited to pitch for the demerger mandate.
