Origin makes further investment in UK's Octopus Energy
Australia’s Origin Energy will invest an additional £38mn ($51.7mn) in UK energy retailer Octopus Energy to maintain its 20% equity interest in the company, it said on September 28. This deal comes a day after Al Gore’s clean energy fund Generation Investment Management (GIM) bought a stake in the UK retailer.
GIM will initially make an investment of £219mn for a 7% stake, followed by a further £219mn by June next year, subject to certain conditions. GIM will have an option to double its stake in Octopus under the same terms prior to June 30, 2022, with Origin having an option to invest to maintain its 20% share if GIM exercises its option.
|
Advertisement: The National Gas Company of Trinidad and Tobago Limited (NGC) NGC’s HSSE strategy is reflective and supportive of the organisational vision to become a leader in the global energy business. |
“The rapid expansion of Octopus underpinned by its market leading technology has driven a tripling in the company’s value to approximately £3bn since we made our initial investment,” Origin CEO Frank Calabria said. “Origin’s additional investment demonstrates our confidence in Octopus’ strategy, management team and growth prospects, confirmed by GIM, which is one of the world’s most innovative sustainable investment funds.”
Octopus’s technology platform, Kraken, is already contracted to improve the customer experience with more efficient operations and cleaner and smarter energy solutions to 17mn energy accounts globally. It has retail businesses in the UK, USA, Germany, Spain and New Zealand. Origin entered into a strategic partnership with Octopus in May 2020, acquiring a 20% equity interest for £215mn.
On completion of the initial GIM investment, Octopus’s ownership will comprise 48.2% Octopus Capital, 15.48% Octopus founders and employees, 20% Origin, 9.08% Tokyo Gas and 7.25% GIM.