EIP, a Swiss asset manager, increases its stake in Eni Plenitude from 10% to 10%

Eni announced that Swiss asset manager Energy Infrastructure Partners will increase its stake in Eni Plenitude to 10%. The deal values the group’s retail and renewable businesses at more than 11 billion euros, including debt.

In a Monday statement, the Italian energy group EIP said that it had agreed to subscribing to a new issue of shares worth approximately 209 million euro.

This deal is part Eni's "satellite" strategy. It aims to create separate units that can attract investments for their business growth. Francesco Gattei, Eni's Chief Financial and Transition Officer, said that the group believes this is the best approach for the energy transformation.

Gattei stated in the statement that "we have embarked upon a path to create low-carbon and zero-carbon companies which attract leading investors and grow organically and become self-sustaining."

Eni's'satellite strategy' has seen it partner with U.S. investment company KKR, which invested 2,94 billion euros into the biofuels unit Enilive of the group to acquire a 25% stake.

The Italian group has also been in contact with investors who are interested in partnering in its Carbon Capture and Storage (CCS) business.

EIP, a Swiss company, had invested in Plenitude for the first time in March. It purchased a 7.6% stake in the company at 58 million euros.

Tim Marahrens, EIP partner, said: "Our decision confirms our belief in the value and excellence of Plenitude’s entire organization, leadership team and company's ability deliver on its strategy and plan."

Mediobanca advised EIP, while Rothschild advised EIP.

Plenitude has an installed capacity of more than 3 gigawatts (GW), sells electricity and gas to over 10 million customers and operates a network with 21,000 charging stations for electric vehicles.

By 2027 the company hopes to have over 11 million clients, 8 GW of renewable energy and 40,000 charging stations installed in Italy and abroad.

(source: Reuters)