Bulb Energy goes up for sale – and could fetch £500m
THE owners of Bulb Energy are preparing to cash in on the energy firm’s meteoric ascent in what is set to be the most lucrative sale to emerge since the energy supply market’s privatisation.
Hayden Wood and Amit Gudka, Bulb Energy’s founders, are said to be priming Britain’s fastest growing energy start-up for a sale to tech investors, either through an acquisition or a market listing.
City sources confirmed that the company is up for sale and its founders are courting the attention of funds in New York and Silicon Valley following a £60m investment from investors, including Yuri Milner, the Russianisraeli billionaire.
A senior industry source said “the complicated and heavily structured deal” promises its new investors, Magnetar and Mr Milner’s DST Global, the right to 100pc of the first £60m of dividends and the equivalent of 12.8pc of the company.
Senior industry figures said the “stopgap” investment will help soothe the company’s battered balance sheet ahead of the deal, which could value the supplier at almost £500m. Bulb has grown its customer base from 15,000 homes at the start of 2017 to more than 670,000 by offering rock-bottom prices. It said the fund raising was to “further drive growth”.
Bulb’s big payday is likely to pip a long awaited sale of rival Ovo Energy, which was snapped up by Mayfair Equity Partners three years ago. The fund is widely expected to reap the rewards of its £200m investment by selling the company on within the next year.