Goldman Sachs in talks to invest £250m in challenger OVO Energy
A division of Goldman Sachs is reportedly in talks to invest £250m into the UK’s second largest energy supplier OVO Energy.
A private investment division of Goldman Sachs’ asset management division is in “advanced” talks with the company, Sky News reported, and the deal could be announced within weeks.
It could raise between £250m and £300m concluding OVO’s plan to raise capital to accelerate its expansion, which began last autumn. Sky News reported Goldman will likely own a substantial minority stake in the energy company.
It is the first external capital raising since the Mitsubishi Corporation bought a 20 per cent stake in OVO in early 2019.
The valuation attached to Goldman’s investment is expected to be £2bn and £3bn, solidifying its role as a rival to the likes of British Gas and Scottish Power.
Founded in 2009, OVO Energy has grown to become one of the country’s largest energy suppliers and last year closed a £500m deal for SSE’s retail arm, which brought its customer numbers up to nearly 5m..
Insiders told Sky News the cash would help OVO expand its software platform Kaluza internationally after recently announcing a joint venture with Australian company AGL.
Kaluza is an intelligent energy platform which helps with efficiency by using artificial intelligence and machine learning.
Goldman Sachs declined to comment.