Origin shares gain after it lifts Octopus stake
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More news: Shares in energy giant Origin have jumped 2.7% to $8.24 by mid-afternoon, after it lifted its stake in fast-growing British renewables play Octopus Energy. Origin spent £280 million ($528 million) to grow its stake by 3% to 23%. Octopus' valuation has swollen by 60% in the past two years.
Origin Energy boosts investment in UK’s Octopus
The news: Origin Energy has increased its stake in British renewable energy company Octopus Energy after participating in a fresh funding round alongside the UK-based firm’s existing major investors.
The numbers: Origin invested another £280 million ($528 million) to lift its stake in Octopus by 3% to 23%. The latest capital raise is being executed at a pre-money valuation of £5.6 billion, which represents a 60% increase in the value of Octopus since December 2021.
The context: Origin has now invested more than $700 million into Octopus Energy since buying its initial equity stake in May 2020. Octopus is now the UK's second-largest energy retailer, with more than 11 million customer accounts, including those added through two recent acquisitions. It has also seen success with its Kraken customer platform, which it also licenses globally. Other major investors in Octopus include Canada Pension Plan Investment Board (CPP Investments), which will raise its stake to 11% from 6%, Generation Investment Management (GIM), which will maintain its interest around 10%, and Tokyo Gas, which is also likely to maintain its stake at 10%.
The source: ASX announcement
