Origin Energy (Origin) advises that Canadian Pension Plan Investments (CPPI) has agreed to acquire a ~6 per cent stake in Octopus Energy Group Limited (Octopus) for £211 million.
Origin recently invested an additional £38 million (~A$70 million*) in Octopus to maintain its 20 per cent equity share, following a £211 million investment by Generation Investment Management (GIM). Under that agreement, GIM has the option to double its investment on the same terms by 30 June 2022.
Origin has the option to invest between £65 – £100 million (~A$120 –$185 million) by 30 June 2022 to maintain its 20 per cent stake in Octopus, following the CPPI investment and should GIM exercise its option. Any follow on investment by Origin will be subject to a considered investment decision at that time.
The recent investments in Octopus value the company at more than £3 billion, representing a tripling in value since Origin’s initial investment in May 2020.
Origin CEO Frank Calabria said, “With continued strong growth in its own customer base and the licensing of its Kraken technology to leading retailers around the world, it is unsurprising that Octopus is attracting the attention of major global investors.
“CPPI is one of the world’s largest public pension funds and its investment in Octopus will provide further support to execute its strategy and accelerate investment in global growth, as the company targets 100 million customer accounts on Kraken by 2027.
“Origin saw the potential in Octopus when we acquired our 20 per cent stake in 2020, and we remain highly optimistic about the growth outlook for the business, which has added a further 1.1 million customers in the UK in the past three months alone.
“In addition, Octopus recently announced that EDF UK will licence Kraken, and once these customers are migrated it will bring to 25 million the number of energy accounts on the market-leading technology platform.
“Origin’s exposure to Octopus’ continued success is expected to provide an important avenue of future growth for Origin,” Mr Calabria said.
Octopus is a global leader in energy retailing and technology. Octopus has approximately 5.3 million customer accounts, is a technology and software provider licencing its proprietary platform, Kraken, to a growing list of leading energy retailers around the world, and a renewable asset manager with more than £3.4 billion of assets under management. Octopus is also increasingly focused on developing future energy products and services, including the decarbonisation of heat, smart meters and electric vehicle leasing and charging.
Octopus continues to expand into new markets, including a recent strategic acquisition in Italy. This follows acquisitions in Spain, Texas and New Zealand, along with a strategic partnership with Tokyo Gas in Japan, the world’s largest deregulated energy market.
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