Eni SpA, Italy’s leading oil and gas company, is actively seeking investors to join its renewable energy journey. The company is in discussions with multiple investment funds regarding the sale of a minority stake in its renewable and retail business, Plenitude. This strategic move underscores Eni’s commitment to attracting specialized investors to support its ambitious energy transition goals.
Earlier this year, in March, Eni successfully sold 7.6% of Plenitude to Energy Infrastructure Partners (EIP). Building on this momentum, Eni is now exploring further investment opportunities for its low-carbon unit. The current talks with potential investors are centered around a valuation exceeding €10 billion ($11.09 billion) for Plenitude. This valuation aligns with the price EIP paid for its stake earlier this year.
Among the investors expressing interest in acquiring a stake of around 10% in Plenitude are Apollo Capital Management, a prominent U.S. asset management firm, Norway’s private equity fund HitecVision, and London-based Trilantic Europe. While both Eni and the potential investors have chosen to remain tight-lipped about the ongoing negotiations, the interest from these high-profile firms signals a strong belief in Plenitude’s potential.
Plenitude is a vital component of Eni’s renewable energy strategy, generating power from renewable sources, providing electricity and gas services, and developing a network of charging stations for electric vehicles. The business unit is poised for significant growth, with earnings before interest, taxes, depreciation, and amortization (EBITDA) projected to reach €1 billion this year, up from €900 million in 2023.
Eni’s approach to attracting investment for its renewable energy and biofuel businesses is known as the “satellite strategy.” This involves creating separate units for these ventures and seeking strategic partners to help drive growth and accelerate the transition to a sustainable energy future. In July, Eni initiated exclusive talks with KKR, a leading U.S. investment firm, regarding the sale of up to 25% of its biofuel business, Enilive.
This strategic approach highlights Eni’s commitment to a sustainable future. By attracting specialized investors, Eni aims to leverage their expertise and resources to scale up its renewable energy and biofuel operations, ensuring a smooth transition to a cleaner energy landscape. Eni’s proactive steps in this area position it as a leader in the global energy transition.
