(Reuters) -Britain's Octopus Energy is close to hiring bankers to oversee a 10-billion-pound ($13.7 billion) separation and stake sale of its technology arm Kraken Technologies, Sky News reported on
Octopus Energy Plans $14 Billion Spin-Off of Kraken Technologies
(Reuters) -Britain's Octopus Energy is close to hiring bankers to oversee a 10-billion-pound ($13.7 billion) separation and stake sale of its technology arm Kraken Technologies, Sky News reported on Saturday, citing sources familiar with the matter.
A minority stake in Kraken of up to 20% is expected to be sold to external shareholders to help validate the technology platform's valuation, the report said.
The report added that the demerger, expected within the next year, would see Octopus Energy's existing investors given shares in the newly independent Kraken business.
A 10-billion-pound valuation for Kraken implies that the whole group, including its retail supply business, is worth around 15 billion pounds or more, the report said, citing a source.
Octopus Energy declined to comment on the report while Kraken Technologies could not immediately be reached.
Investment banks have been invited to pitch for the demerger mandate in recent weeks, Sky News reported.
($1 = 0.7325 pounds)
(Reporting by Anusha Shah in Bengaluru. Editing by Alison Williams and Mark Potter)
