Investor Ares has signed an agreement with Eni to acquire a 20% stake in its renewables arm Plenitude.
Ares will acquire the stake for a total value of approximately €2bn, based on an equity valuation of €10bn, which corresponds to an enterprise value of over €12bn.
The completion of the transaction is subject to customary regulation approvals.
Ares’ entry follows that of Energy Infrastructure Partners, which holds a 10% stake in Plenitude.
Plenitude chief executive Stefano Goberti said: “I am pleased to welcome Ares, one of the world’s leading investment funds, as a new shareholder in Plenitude.
“The deal is a further endorsement of the quality of our strategic approach, which combines economic and environmental sustainability in an integrated business model projected on the future of the energy sector.
“Ares, with its entry into the company, highlights the progression of Plenitude’s value and becomes part of our growth journey, which we pursue with determination and conviction day after day.”
Stefano Questa, partner and co-head of European alternative credit at Ares, said: “Plenitude is an established leader in energy transition, with a differentiated business model and an outstanding track record of growth and profitability.
“We are delighted to support Plenitude in delivering its financial and impact goals, and we look forward to partnering with its management team and Eni in this exciting new chapter.”
Plenitude operates in over 15 countries worldwide, integrating a business model that combines over 4GW of renewable energy production, energy sales and solutions across Europe.
By 2028, Plenitude aims to reach 10GW of installed renewable capacity.