Bulb Energy goes up for sale – and could fetch £500m

The Sunday Telegraph - Money & Business - - Business - By Jil­lian Am­brose

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.

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