UK's biggest energy supplier is ‘on verge of splitting from tech arm' in £10billion demerger
The UK's biggest energy supplier is planning to separate from its technology arm Kraken with plans to hire bankers to oversee the deal.
It is expected that the demerger will take place in the next year and would see existing investors given shares in the newly independent Kraken firm.
A minority stake in Kraken of up to 20% is expected to be sold to external shareholders.
One banking source told Sky News that Kraken could be valued at as much as £10.25bn.
It has now been revealed that Octopus is looking to hire bankers to oversee the demerger with Citi, Goldman Sachs, JP Morgan and Stanley Morgan invited to pitch for the demerger mandate.
Kraken is an operating system which is licensed to other energy providers and water companies.
Octopus Energy has around 7.5 million retail customers in Britain and a further 2. million outside the Britain, in January it announced that it was the country's biggest supplier.
The firm passed British Gas with a 24% market share.
The £10 billion valuation of Kraken would reportedly suggest that the whole group, including the retail supply business was worth around £15 billion.
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