Eni Explores Sale of Additional Stake in Biofuel Unit Enilive

By Francesca Landini

MILAN (Reuters) – Suitors have approached Eni regarding the potential sale of a second stake in its biofuel unit Enilive, as the Italian group finalizes details of a deal to sell a stake to KKR, according to two sources.

The disposal of another portion of Enilive would signify investor confidence in Eni’s strategy of spinning off growth businesses to attract financial resources.

In July, the Italian energy group began talks with U.S. investment firm KKR to sell a 20-25% stake in Enilive, based on a valuation ranging from 11.5 billion to 12.5 billion euros ($12.8-13.9 billion).

Sources indicate that negotiations with KKR may conclude favorably within the next two to three weeks, with KKR likely purchasing 20% of Enilive.

Additionally, Eni has been approached by other suitors, including New York-based Stonepeak, about selling another minority stake in Enilive. Eni, KKR, and Stonepeak declined to comment on these developments.

As part of its ‘satellite’ strategy, Eni finalized a deal in March to open up its retail and renewable unit Plenitude to Swiss asset manager Energy Infrastructure Partners (EIP).

Enilive operates several biorefineries in Italy and abroad, producing biofuels from waste and vegetable oil sourced partly from Eni’s agri-business in several African nations. The company also produces biomethane, provides smart mobility services, and operates over 5,000 multi-fuel stations across Europe.

Enilive is projected to achieve core earnings of approximately 1.2 billion euros by 2025, up from an estimated 1 billion euros for this year.

Biofuels, derived from vegetable oil, waste cooking oil, and grease, are anticipated to play a significant role in decarbonizing the trucking, aviation, and shipping industries in the coming years.

($1 = 0.8965 euros)