Origin Energy rallies as Octopus Energy reportedly mulls demerger
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The news: Origin Energy shares surged in morning trade after a media report over the weekend claimed the company's minority-owned UK business Octopus Energy is seeking a demerger of its technology arm.
The numbers: Origin shares were up 4.5% at 11:25am AEST, helping the utilities sector jump 2.4%.
Sky News reported on Saturday that Octopus, in which Origin holds a 23% interest, is planning a stake sale of its technology business Kraken Technologies.
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 report said.
The context: The report suggested Kraken — an AI-powered operating system which is licensed to other energy providers, water companies and telecoms suppliers — could be valued at up to £10 billion ($20.9 billion).
Octopus is the UK's largest residential gas and electricity supplier, surpassing Centrica-owned British Gas this year to secure a 24% market share.
The source: Sky News
