KPMG UK advises Octopus Energy Group on landmark Asian partnership
KPMG UK advises Octopus Energy Group
$250 million investment deal with Tokyo Gas is next step in Octopus Energy Group’s ‘renewables revolution’ plan
Follows KPMG-backed Australian partnership with Origin Energy earlier in 2020
One of the UK’s leading energy and utility firms, Octopus Energy, has secured a second major international partnership, enabling it to enter the Japanese market in 2021.
KPMG acted as lead advisors in the agreement with Tokyo Gas, which secures more than $250 million of additional investment for UK-headquartered Octopus, increasing the entech group’s valuation to $2.1 billion.
The announcement follows a similar deal reached earlier this year between Octopus Energy and Australia’s Origin Energy, and continues the Group’s rapid global expansion strategy, which has been supported by KPMG and includes technology and innovation-led investments in Germany and the USA.
The latest agreement will see Octopus Energy and Tokyo Gas launch the company TG Octopus Energy (consumer brand Octopus Energy), a 30:70 joint venture backed by working capital and growth funding provided by Tokyo Gas. International tech heaven Tokyo will function as a launchpad for Octopus's expansion into the Asian market.
Octopus Energy Japan will provide 100% renewable electricity, helping to drive green energy in the world’s biggest competitive energy market.
Gavin Quantock, Partner & Co-Head of KPMG UK’s Energy Lead Advisory team, said:
“Today’s announcement is another landmark moment for Octopus Energy at a time when the wider utilities and energy markets are going through a period of uncertainty and change.
“KPMG’s Energy Lead Advisory supported the business with its strategic partnership in Australia as well as acting as lead advisors in this agreement.. Japan currently lags behind the UK with only 18.9% of electricity generated by renewables, compared with 37.9% in Great Britain and Northern Ireland. With leaders in Japan and across Asia now fully embracing the shift away from traditional power sources, there’s a golden opportunity for a UK-founded company to be right at the heart of the renewables revolution.
The deal also sees Tokyo Gas take a 9.7% equity stake for consideration of $200m, alongside a further $47m equity investment from Origin Energy, to continue its global expansion and technology development. This will see Octopus enhancing its smart grid capability and commitment to driving the green energy revolution around the world.
Octopus Energy, Founder and CEO, Greg Jackson, added:
“When Origin invested 7 months ago, we said it was fuel for stage two of our mission. Since then, Octopus Energy has accelerated that mission to make the global green revolution faster and cheaper by launching Octopus Energy Germany and New Zealand, acquiring Octopus Energy USA and acquiring Upside Energy to deepen our smart grid capabilities with their powerful technology.
“Our UK retail business has grown 20% to 1.8million households, joining the ranks of The New Big 6, whilst maintaining outstanding service levels throughout Covid, we’ve launched Electric Juice, the first electric vehicle charging network and we have exciting plans for the electrification of heat.
“Tokyo Gas’s investment into Octopus Energy Group, and the additional investment from Origin, will enable our amazing team to drive even faster at the forefront of the global energy revolution.”
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