Octopus Energy prepares $14 billion spin-off of Kraken

British firm Octopus Energy is considering a £10 billion spin-off of Kraken Technologies, involving an upcoming minority stake sale, and has initiated preliminary discussions with banks to oversee the strategic operation within the next year.

Share:

The British energy supplier Octopus Energy is currently examining a strategic spin-off of its technology subsidiary, Kraken Technologies, in a deal estimated at around £10 billion (approximately $14 billion). This major financial move, revealed by Sky News, could significantly alter the group’s capital structure, positioning Kraken as an independent entity on the market. Existing Octopus Energy investors are expected to receive shares in the newly separated company. In this context, Octopus has already begun preliminary discussions with several investment banks to manage the upcoming transaction.

A defining valuation for Kraken

The project also involves the potential sale of a minority stake in Kraken Technologies, possibly up to 20%. This transaction would help confirm and validate Kraken’s high valuation, estimated at approximately £10 billion. According to sources cited by Sky News, this valuation implies that the entire Octopus Energy group, including both its technology and energy supply businesses, would be valued at least £15 billion (approximately $20.6 billion). At this stage, Octopus Energy has declined to officially comment on this information, while Kraken Technologies was unreachable for comment.

A strategic technological asset

Kraken Technologies provides an advanced software platform designed for efficient and automated management of energy distribution operations. This technology has been adopted by several major international energy companies, thereby enhancing its attractiveness to financial markets. The envisaged independence could provide Kraken with greater operational agility and support its international expansion, especially in highly deregulated energy markets. However, the selection process for the banks to manage the transaction is still ongoing, suggesting that the spin-off could be finalized within the next twelve months.

A favorable context for complex financial transactions

This announcement occurs in a context characterized by increased activity in corporate restructuring and spin-offs within the energy sector. Several major European and international players are seeking to isolate their technological assets to enhance investor attractiveness. For Octopus Energy, such an operation could represent a decisive step in capitalizing on the current enthusiasm for technology solutions in the energy sector, thus reinforcing its strategic position in the market. The coming months will be crucial to confirm market interest in Kraken Technologies and the overall strategy of the British group.

Eni announces a sharp decline in quarterly net profit, the result of lower oil prices and a weaker dollar, while maintaining a strengthened dividend policy and a development trajectory in renewables.
EDF is reassessing its industrial priorities and streamlining investments, as net profit falls to €5.47bn ($5.94bn) in the first half of 2025 due to a weakening electricity market.
Energy group Edison posts increased sales and investments despite a less favourable market environment, advancing its renewables development and strengthening its positions in Italy.
SEGULA Technologies opens an office in Cape Town, strengthening its presence in the African market and targeting expansion in energy, rail, and automotive sectors, in partnership with South African industrial firm AllWeld.
GE Vernova's revenue rose by 11% in the second quarter, driven by momentum in its Power activities, as the US group raised its financial targets for 2025.
The Allrig group is expanding its operations in Saudi Arabia, supported by AstroLabs, to boost energy efficiency and address the growing needs of the local oil sector.
Saipem and Subsea7 formalise their merger agreement, resulting in the creation of Saipem7, an international energy services player with consolidated revenue of €21bn and an order backlog of €43bn.
TotalEnergies reports a significant decrease in net profit and revenue for the second quarter, while relying on growth in its hydrocarbon and electricity production to sustain profitability and global ambitions.
Exus Renewables North America finalizes $308.2 million financing for two major solar portfolios in New Mexico and wind projects in Pennsylvania, showcasing the expansion of large-scale renewable assets across multiple U.S. markets.
Baker Hughes posted attributable net income of $701 mn in the second quarter, while executing several strategic transactions and strengthening its position in industrial technologies and oilfield services markets.
Equinor announces a 13% decline in adjusted profit for Q2 2025, driven by falling oil prices, despite rising gas prices and production.
Iberdrola launches a EUR5 billion (USD5.87 billion) capital increase to fund the expansion and modernization of its power grids in the UK and the US, while announcing a decline in its half-year profit.
Halliburton reports a 50% drop in net income and nearly a 6% reduction in revenue for Q2, with demand in North America remaining particularly weak.
The growth of data centres and artificial intelligence is putting unprecedented pressure on global electricity grids, prompting major tech companies to rethink their energy supply to address capacity and competitiveness challenges.
BP announces the appointment of Albert Manifold as chairman, succeeding Helge Lund. Manifold, former CEO of CRH, will join the board on September 1, before officially taking over the role on October 1.
Romanian company Electrica raised €500 million through the country's first green bond issuance, with participation from the European Investment Bank (EIB), to finance its renewable energy and storage projects.
Kem One and EDF signed a protocol agreement for a 10-year electricity supply contract, covering seven French industrial sites. The contract is expected to be finalised by the end of September 2025.
The Canadian energy solutions provider has received approval from the Toronto Stock Exchange to repurchase up to 10% of its float by July 2026.
The Marseille Commercial Court has validated Bourbon Group’s accelerated safeguard plans, paving the way for a debt reduction and shareholder transition by the end of 2025.
Legrand now expects annual revenue growth of 10 to 12%, driven by data centre momentum, with an immediate impact on its share price in Paris.