Eni Strikes Deal for Energy Infrastructure Partners to Invest in Plenitude -- Update
December 21 2023 - 5:59AM
Dow Jones News
By Andrea Figueras
Eni agreed to sell a minority stake in its low-carbon unit
Plenitude to investor Energy Infrastructure Partners, in a deal
valuing the business at roughly 8 billion euros ($8.75 billion)
that could pave the way for a potential initial public
offering.
The Italian oil-and-gas major said Thursday that Energy
Infrastructure Partners would acquire a stake of up to 9% in
Plenitude through a capital increase of up to EUR700 million by
early 2024, becoming a minority shareholder.
The transaction, which gives Plenitude an equity value post
money of up to around EUR8 billion and an enterprise value of more
than EUR10 billion, will reinforce the subsidiary's balance sheet,
reducing corporate debt and supporting the company's strategic
plan, Eni said.
Plenitude's valuation is consistent with market expectations and
provides an important valuation floor in the context of a potential
IPO later in 2024, Jefferies analyst Giacomo Romeo wrote in a note
to clients.
The agreement will support the company's growth in the
production of energy from renewable sources, in the market for the
sale of energy and energy-efficiency solutions for retail and
business customers, and in the deployment of charging
infrastructure for electric mobility in Italy and Europe, Plenitude
said.
Plenitude has ambitious growth targets across its business lines
for the coming years, Energy Infrastructure Partners said.
The company aims to deliver more than 7 gigawatts of installed
renewable capacity by 2026 and 15 gigawatts by 2030, up from 2.2
gigawatts at the end of 2022, Eni said, while Plenitude's earnings
before interest, taxes, depreciation and amortization are expected
to triple over the 2022-2026 period, reaching EUR1.8 billion.
The deal is also set to improve Eni's capital structure,
reducing its consolidated net financial leverage and optimizing its
capital base, said Eni's Chief Executive Claudio Descalzi.
In June 2022, Eni intended to launch an IPO for Plenitude for
the listing of ordinary shares on Euronext Milan. However, the
company postponed the stock market debut citing deteriorated market
conditions.
Write to Andrea Figueras at andrea.figueras@wsj.com
(END) Dow Jones Newswires
December 21, 2023 06:44 ET (11:44 GMT)
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