Sources: Eni is in discussions with funds about another Plenitude stake sales

Two sources familiar with the matter confirmed on Friday that the Italian energy group Eni was in discussions with several funds about the possible sale of a minor stake in its renewables and retail businesses Plenitude.

This possible sale would be a further step in Eni’s strategy to tap specialized investors to fund the energy transition of the group. Eni sold 7.6% of Plenitude in March to Energy Infrastructure Partners.

Sources said that talks between Eni, and investors interested in its low-carbon unit were based on an estimated value of Plenitude at more than 10 billion euro ($11.08 billion), the price for which EIP purchased the shares of the unit early this year.

According to one source, the U.S. Asset Management firm Apollo Capital Management as well as the Norwegian private equity fund HitecVision along with the London-based Trilantic Europe are among the investors who may be interested in acquiring a 10% stake in Plenitude.

Eni has declined to comment.

Apollo, HitecVision, and Trilantic did not respond to requests for immediate comment.

Plenitude produces electricity from renewable sources, sells energy services, such as gas, to businesses and households, and develops a charging network for electric cars. The company aims to earn 1 billion euro this year before taxes, interest, depreciation, and amortization, compared to 0.9 billion in 2023.

Eni's so-called "satellite strategy" involves creating units that focus on specific businesses such as biofuels and renewable energy. It also seeks out investors who are interested in assisting their growth.

The state-controlled group announced in July that it was holding exclusive discussions with U.S. Investment Company KKR regarding the sale of 25% or more of its biofuels business Enilive. Reporting by Francesca Landini. Jane Merriman edited the article.

(source: Reuters)