The weight of UK octopus energy is the weight of a $14 billion high-tech arm Kraken Demarger, says Sky News

(Reuters) – Britain’s Octopus Energy is close to hiring bankers to oversee the 1 billion pound ($13.7 billion) separation and pile sales for Craken Technology, Sky News reported on Saturday, citing sources familiar with the issue.

Up to 20% of Kraken’s minority stake is expected to be sold to external shareholders to validate the valuation of the technology platform, the report states.

The report added that Demerger, which is expected next year, looks at existing investors in Octopus Energy, given stakes in the newly independent Kraken business.

Kraken’s £10 billion valuation means that the entire group, including its retail supply business, is worth more than about £15 billion, the report cites sources.

Octopus Energy declined to comment on the report, but Kraken Technologies was not immediately reachable.

According to Sky News, investment banks have been invited to pitch for Demerger Mandate in recent weeks.

($1 = 0.7325 pounds)

(Reporting by Anusha Shah of Bengaluru; Edited by Alison Williams and Mark Potter)