Finance
UK's Octopus Energy weighs $14 billion demerger of tech arm Kraken, Sky News says
Published by Global Banking & Finance Review®
Posted on July 5, 2025
1 min readLast updated: January 23, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on July 5, 2025
1 min readLast updated: January 23, 2026
Octopus Energy is planning a $14 billion demerger of its tech arm, Kraken Technologies, with a potential 20% stake sale to external shareholders.
(Reuters) -Britain's Octopus Energy is close to hiring bankers to oversee a 10-billion-pound ($13.7 billion) separation and stake sale of its technology arm Kraken Technologies, Sky News reported on Saturday, citing sources familiar with the matter.
A minority stake in Kraken of up to 20% is expected to be sold to external shareholders to help validate the technology platform's valuation, the report said.
The report added that the demerger, expected within the next year, would see Octopus Energy's existing investors given shares in the newly independent Kraken business.
A 10-billion-pound valuation for Kraken implies that the whole group, including its retail supply business, is worth around 15 billion pounds or more, the report said, citing a source.
Octopus Energy declined to comment on the report while Kraken Technologies could not immediately be reached.
Investment banks have been invited to pitch for the demerger mandate in recent weeks, Sky News reported.
($1 = 0.7325 pounds)
(Reporting by Anusha Shah in Bengaluru. Editing by Alison Williams and Mark Potter)
The estimated value of Kraken Technologies is around 10 billion pounds, which is approximately $13.7 billion.
A minority stake of up to 20% in Kraken is expected to be sold to external shareholders to help validate the technology platform's valuation.
The demerger is expected to take place within the next year.
Existing investors in Octopus Energy will be given shares in the newly independent Kraken business as part of the demerger.
Yes, investment banks have been invited to pitch for the demerger mandate in recent weeks.
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