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(Bloomberg) — Eni SpA agreed to sell a 20% holding in its renewable arm Plenitude to Ares Alternative Credit Management for about €2 billion ($2.3 billion), its second sale of a stake in the unit.
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The transaction is based on an equity value of Plenitude of €10 billion, corresponding to an enterprise value of more than €12 billion, the renewable business said in a statement. Eni said in May it was in exclusive talks with the company over the sale.
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“The valuation of Plenitude has positive implications for the stock as it allows further value to be unlocked in one of Eni’s satellites,” Massimo Bonisoli, an analyst at Equita Group SpA, said in a note. The company completed the sale of 10% of Plenitude to Energy Infrastructure Partners earlier this year.
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Eni shares were little changed as of 10:33am local time, while the Milan stock index slid 0.6%. Eni stock initially gained as much as 0.9%.
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The energy major has said it also plans to sell stakes in its businesses including biofuels and mobility arm Enilive, where US-based KKR & Co. Inc. bought a 25% holding earlier this year. It is in exclusive talks for a stake in its carbon capture and storage unit.
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Milan-based Plenitude was set up to hold Eni’s energy retailing and renewables businesses. Initial plans for listing Plenitude have been put on hold.
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Ares, an alternative asset manager overseeing nearly $550 billion, has recently opened an office in Milan, Italy’s financial hub, in order to expand its business in that market.
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(Updates with analyst comment and share price from third paragraph.)
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