Origin Energy to invest $210m in Kraken's $1.5b equity raise
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The news: Origin Energy will invest $210 million in its part-owned energy software platform Kraken Technologies, as part of Kraken's first standalone equity raise of USD1 billion ($1.5 billion).
The numbers: The investment round, which includes a primary equity raise and a secondary sale process, values Kraken at around USD8.65 billion.
Origin has also agreed to waive exclusivity to the Kraken platform in Australia in exchange for an additional 1.5% equity interest in Kraken. Origin's interest in Kraken will remain at 22.7%, offsetting diluting from the equity raise. It will also continue to hold its 22.7% strategic stake in Kraken's parent company Octopus Energy.
The context: Origin said the raise will support the legal and financial separation of Kraken from British energy supplier Octopus Energy, by providing the capital required for both businesses to pursue independent growth paths. Octopus confirmed in September that it will spin off Kraken in mid-2026 to help accelerate the platform’s expansion across the globe.
Of the USD1 billion raised, USD150 million will be retained in Kraken, with USD850 million retained in Octopus. In addition, Octopus Capital and other investors will inject a further $320 million in funding Octopus.
Post-separation, Octopus will retain a 13.7% interest in Kraken as its foundation customer.
What they said: "We have been on a path to separate Octopus Energy and Kraken Technologies, and through execution of these transactions, have now laid the foundations necessary for this to occur and enable both the businesses to pursue their growth ambitions with greater focus and financial strength," said Origin CEO Frank Calabria.
The source: ASX
