MILAN – Eni (NYSE: E), the Italian energy group, is in talks with several funds over the potential sale of a minority stake in its renewable and retail business Plenitude, two sources with knowledge of the matter said on Friday.
The possible sale would be another step in Eni’s strategy of tapping specialized investors to help fund the group’s energy transition. In March, Eni completed the sale of 7.6% in Plenitude to Energy Infrastructure Partners.
The sources told Reuters talks between Eni and investors interested in the low-carbon business were based on a valuation for Plenitude of more than 10 billion euros ($11.08 billion), which is the value at which EIP entered the share capital of the unit earlier this year.
One of the sources said that U.S. asset management firm Apollo Capital Management, Norway’s private equity fund HitecVision, and London-based private equity firm Trilantic Europe were among the investors interested in the potential acquisition of a stake of around 10% in Plenitude.
Eni declined to comment.
Apollo, HitecVision, and Trilantic were not immediately available for comment.
Plenitude generates power from renewables and sells electricity, gas, and energy services to households and businesses. It is also developing a network of charging points for electric vehicles. It targets earnings before interest, taxes, depreciation, and amortization of 1 billion euros this year, up from 0.9 billion euros in 2023.
Under its so-called satellite strategy, Eni (NYSE: E) is creating separate units focused on specific businesses like renewable energy and biofuels. It is also forming partnerships with investors interested in supporting their growth.
In July, the state-controlled group announced exclusive talks with U.S. investment company KKR (NYSE: KKR) over the sale of up to 25% of its biofuel business Enilive.
($1 = 0.9023 euros)
(Source: ReutersReuters)
