Energy Infrastructure Partners (EIP) will invest in Eni’s renewables arm Plenitude, as part of an up to €700m capital increase.
The deal will see EIP enter Plenitude’s share capital, with its investment, post-transaction, reaching approximately 9% of the company’s share capital.
In particular, the parties agreed the initial capital increase amount is €500m, with the option for EIP to go up to €700m by early 2024.
The transaction implies an Equity Value of Plenitude post money of up to around €8bn and an enterprise value of over €10bn.
Eni chief executive Claudio Descalzi, commented: “We have achieved an excellent transaction. Thanks to it we highlight the value of Plenitude within Eni; we strengthen Plenitude’s financial structure to further support its energy transition and growth path; and we establish a long-term partnership with a leading international financial investor capable of contributing to Plenitude’s value creation.
“Finally, we also improve Eni’s capital structure, reducing its consolidated net financial leverage and optimising its capital base.
“Indeed, this is a major milestone in our satellite model development, a key strategic initiative aimed at enhancing our high potential businesses by creating the conditions for independent growth, accessing new pools of capital, and providing visibility into their market value.
“We have made an important step forward in the enhancement of one of our strategic companies, that, alongside our sustainable mobility company Enilive, is focused on the sale of increasingly decarbonised products and the abatement of our Scope 3 emissions in our energy transition pathway.”