Octopus Energy plans to spin out its lucrative software division, Kraken, as a separate company, according to reports.
Founded in 2015, Kraken — which supplies gas and electricity to customers in the UK and six other countries — recently recorded £159m in post-tax profit according to full-year results published in April, a 12% dip.
But in the same period, Kraken Technologies, which licenses software to other energy companies, saw profits surge 483% to £35m.
According to Sky News, Octopus is in the process of spinning out Kraken, recruiting bankers to oversee a demerger which could see the new company valued at around £10m.
The site suggests Octopus plans to retain a controlling stake in the company, with plans to invite external investors to bid for the remaining 20% of shares.
Octopus boasts more than 7m UK customers following its 2022 rescue of bankrupt energy supplier Bulb and, in January, announced it become the nation’s biggest provider, with a 24% market share.
Sifted approached Octopus for comment.
Read the orginal article: https://sifted.eu/articles/octopus-energy-kraken-demerge-spin-out-uk/
