Origin Energy (ASX: ORG) plans to invest an additional $ 70m (Â£ 38m) in UK energy regulator Octopus after Generation Investment Management (GIM) invested $ 397m (Â£ 211m) in the society.
Deal with GIM values ââOctopus at over $ 5.6 billion (Â£ 3 billion), roughly three times the value Octopus had given itself when Origin bought its initial $ 500 million stake in May of last year. The energy firm’s move was to own its 20 percent stake in Octopus, after GIM acquired a 7 percent stake.
Octopus ‘total UK customer base now holds around 5.3 million energy accounts representing around 9.5% of the UK market, while Origin expects Octopus to continue its’ expansion fast “.
GIM will have the option of doubling its stake in Octopus, with Origin having an investment option, to maintain its 20% stake if GIM exercises its option.
Octopus is forecasting around $ 470 million (Â£ 250 million) in licensing revenue over the next three years based on its latest Kraken technology platform, while developing future energy products and services, including the decarbonization of heat, smart meters, and electric vehicle rental and charging.
âOrigin’s additional investment demonstrates our confidence in the strategy, management team and growth prospects of Octopus, confirmed by GIM, which is one of the most innovative sustainable investment funds in the worldâ , said Frank Calabria, CEO of Origin.
Origin said Octopus will use this investment to accelerate its growth strategy focused on the international expansion of technology licensing and energy retailing, including innovative customer solutions such as charging and leasing capabilities. electric vehicles and electric heat pump services.
âIn the competitive and rapidly evolving energy industry, a technology-based retail company that delivers a superior customer experience at a low cost will be at the heart of Origin’s continued success,â continued Frank.
Actions in Origin Energy (ASX: ORG) are trading 4.9% higher at $ 4.73.