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Origin Energy secures partnership with UK energy retailer
Herbert Smith Freehills has assisted Origin Energy Limited in securing a strategic partnership with UK Octopus Energy.
Naomi Neilson
Firm: Herbert Smith Freehills (Origin Energy)
Value: The investment will consist of an initial $134 million upfront payment, followed by a further $373 million of equity instalment and technology milestone payments over the next four financial years.
Area: Strategic partnership, energy.
Key players: The team was led by partner David Ryan in Sydney, with support from partner Gavin Williams in London. Sydney partner Peter Jones advised on the Kraken licensing and IT aspects, while London partner David Wyles and Sydney associate Gabby Herron-Cartwright advised on financing and London partner Silke Goldberg on energy regulation.
They were assisted by senior associates Jennifer Harding, Martyn Jones, Alex Lundie and Ben Waterfall and lawyers Michael Trent and Victor Chiew. Octopus was advised by KPMG and CMS Cameron McKenna Nabarro Olswang LLP.
Deal significance: Origin has acquired a 20 per cent equity interest in Octopus Energy and a license to use Kraken, Octopus Energy’s leading customer technology platform.
The transaction is of strategic importance to Origin as it leverages digital disruption to create a competitive advantage and deliver significant cost reductions. The Kraken platform offers a streamlined and optimised customer experience and sets up Origin to manage the transition to demand-side participation in the electricity market and virtual power plants, and home automation and customer monitoring and management of their electricity consumption.
Mr Ryan commented: “This transaction played to our strengths in both Australia and the United Kingdom, and in the energy and IT sectors. We are thrilled to continue our close relationship with Origin by supporting it on this strategically important project.”
“Origin clearly has its eyes on the future of energy retailing, with Kraken expected to significantly improve customer experience, reduce costs and open up future growth opportunities for Origin.”
Naomi Neilson
Naomi Neilson is a senior journalist with a focus on court reporting for Lawyers Weekly.
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