Eni and KKR Partnership

By Francesca Landini
MILAN (Reuters) – Italian energy group Eni announced on Thursday that U.S. fund KKR will acquire a 25% stake in Enilive. This deal values the entire biofuel business at 11.75 billion euros ($12.7 billion) including debt.

KKR's investment of 2.938 billion euros enhances Eni's financial standing while allowing the company to maintain control over Enilive.

This agreement aligns with Eni's strategy of spinning off growth sectors alongside co-investors.

The transaction involves a 500 million euro capital increase for Enilive, specifically for KKR, and the sale of Enilive shares owned by Eni for 2.438 billion euros. Additionally, Eni plans to inject 500 million euros into Enilive before the KKR deal finalizes, ensuring the business remains debt-free.

Eni's Chief Executive Claudio Descalzi stated, "This agreement marks a significant further step in our business strategy related to the energy transition."

Financial Advisors: JP Morgan and Mediobanca represented Eni, while Deutsche Bank and Unicredit acted for KKR. Legal counsel was provided by Kirkland & Ellis and Gianni & Origoni.

In a related move last March, Eni opened the capital of its retail and renewables subsidiary Plenitude, granting a minority stake to Swiss asset manager Energy Infrastructure Partners.

> Note: $1 = 0.9270 euros