KEY POINTS
- Eni is in final talks with KKR to sell a 20-25 percent stake in Enilive.
- Other investors, including Stonepeak, have shown interest in acquiring a second stake.
- Enilive is valued between €11.5 billion and €12.5 billion.
Italian energy company Eni has received interest from multiple investors regarding the sale of a second minority stake in its biofuel unit, Enilive, as it finalizes talks with U.S. investment firm KKR to sell an initial 20-25 percent stake. According to sources, negotiations with KKR could conclude within the next few weeks, valuing Enilive between €11.5 billion and €12.5 billion ($12.8-13.9 billion).
Expanding investor interest
In addition to KKR, New York-based investment firm Stonepeak is reportedly among the parties interested in acquiring a stake in Enilive. This increased interest highlights growing investor confidence in Eni’s strategy of spinning off parts of its business to secure financial resources and further drive its green energy initiatives.
Eni has declined to comment on the matter, as have KKR and Stonepeak.
The potential sale of another Enilive stake follows Eni’s broader strategy of attracting investment into its growth businesses. Earlier this year, Eni finalized a deal to open up capital in its renewable and retail unit, Plenitude, to Swiss asset manager Energy Infrastructure Partners (EIP).
Biofuels and future growth
Enilive operates several biorefineries in Italy and abroad, producing biofuels from waste and vegetable oil, partially sourced from the company’s agri-business ventures in Africa. Account to Reuters, the company also produces biomethane, offers smart mobility services, and manages a network of over 5,000 multi-fuel stations across Europe.
Enilive is projected to record core earnings of €1.2 billion in 2025, up from the €1 billion forecast for this year. Biofuels, produced from vegetable oils, waste cooking oil, and grease, are expected to play a crucial role in decarbonizing industries such as trucking, aviation, and shipping in the coming years.
