A MAJOR energy supplier with 4.5million customers is exploring the sale of the business.
Ovo Energy, Britain's fourth-largest energy firm is lining up bankers to assist in a strategic review of the business.
It's understood that the energy supplier is looking to attract new investors for refinancing and assess a full sale of the business.
However, the strategic review of the business is expected to take several months.
It means nothing will change for customers during this process and it's important to note that the company is not going bust.
How to tackle thorny first date subjects… and why you should watch the waiter
Customers who have gas and electricity tariffs with the firm will continue to receive their services as normal.
Ovo Energy was founded by Stephen Fitzpatrick in September 2009 and, by 2017, provided energy tariffs to over 700,000 households.
The company now supplies 4.5million households with gas and electricity across the UK.
But city sources have told Sky News this weekend that Ovo is close to hiring Rothschild to assist with a full strategic review of the business.
Ovo is said to already be in talks with existing borrowers to raise capital.
Its major shareholders include Mayfair Equity Partners, Morgan Stanley Investment Management and Mitsubishi Corporation.
An outright sale of the business is also on the table.
However, insiders say this would be an unlikely outcome at this point.
Ovo declined to comment.
The supplier's rapid rise to prominence was marked by its £500 million acquisition of SSE Energy Services in 2019.
Secret way Tesco staff bag freebies & it’ll have you desperate to work there
By January 2024, all remaining SSE customers would be integrated under the Ovo brand.
Ovo isn't the only energy company to have undergone a strategic review in recent months.
Shell agreed to sell its domestic energy and broadband arm to Octopus Energy last September.
At the time, Shell Energy provided domestic gas, power, and broadband services to approximately two million customers.
The suppliers completed the sale in the fourth quarter of 2023.
The last major supplier to place its domestic arm up for sale was SSE back in 2019.
IN OTHER NEWS
Millions of Tesco shoppers can now get free Clubcard points worth up to £50 with Ovo Energy.
Both new and existing Ovo Energy customers can earn 2,500 free Tesco Clubcard points simply by linking their accounts online.
The 2,500 Clubcard points can be converted into a £25 voucher to spend at Tesco or doubled in value to £50 when redeemed with over 100 Clubcard Reward Partners.
These partners offer a wide range of rewards, including family days out, discounts at popular restaurant chains, and various fun experiences.
To qualify for this offer, customers must pay by direct debit and have a smart meter installed.
The news comes as Ovo Energy launched its own loyalty programme dubbed Ovo Beyond.
The offering is said to help customers unlock up to £1,500 of savings and discounts on selected partner products and services.
This includes discounts on smart thermostats, free boiler service, and 30% off heating and plumbing repairs.
Customers will also have the opportunity to bank free miles and bill credit to be redeemed in the future when they switch to an electric vehicle, install solar panels and more.
