Ovo Group, the UK’s fourth largest energy supplier, is close to hiring bankers to explore fundraising options which could include bringing in new investors or a sale, according to reports.
The group is reportedly considering hiring Rothschild to assist in a strategic review, which could include refinancing or a partial sale of the company.
The strategic review would take several months, according to Sky News, and while an outright sale of the business is seen as unlikely, it is still expected to be explored.
Ovo is thought to already be in talks with existing borrowers to raise capital.
The sponsors of Wembley Arena, Ovo has over four million customers, putting it behind only British Gas, Octopus Energy and E.On Next.
The company has consistently ranked as one of the most complained about energy suppliers in the country, taking the top spot in 2021 and 2023.
The first three months of 2024 saw the company receive 2,371 complaints per 100,000 customers, higher than previous worst performers EDF at 2,303 and British Gas at 1,746.
Set up in 2009 by Stephen Fitzpatrick, who remains a major shareholder, the company surged to popularity after its £500m acquisition of SSE Energy Services in 2019.
Other major shareholders include Mayfair Equity Partners, which is thought to own about 30 per cent of the business, Mitsubishi Corporation, which is thought to own about 20 per cent, and Morgan Stanley Investment Management.
Last year, Mayfair and Morgan Stanley invested a further £200m in the company after having been shareholders since 2015, raising their stakes as the energy supplier revealed a slump in earnings.
Ovo has been contacted for comment.