UK's largest energy supplier to split from tech arm in £10 billion demerger

The demerger is expected to take place in the next 12 months. Octopus Energy Group is set to split from its tech arm Kraken in a £10 billion demerger. The UK's largest energy supplier plans to separate from Kraken and hire bankers to oversee the deal. The demerger is expected to happen within a year, with existing investors receiving shares in the independent Kraken firm. Up to 20% of Kraken may be sold to external shareholders, with a potential valuation of £10.25 billion. Citigroup, Goldman Sachs, JP Morgan, and Stanley Morgan are being considered for overseeing the demerger.

Kraken, an operating system licensed to energy and water companies, serves Octopus rivals EON and EDF Energy, as well as companies in Australia, Japan, and Greece. Chaired by Gavin Patterson, Kraken has contracts with around 70 million customer accounts globally. Speculation of a public listing arose after news of the demerger. Octopus Energy, with 7.5 million UK customers and 2 million international customers, overtook British Gas in market share. The £10 billion Kraken valuation suggests the entire group, including retail supply, is worth around £15 billion. Octopus Energy has not commented on the matter.

According to the source: The Sun.