Swiss asset manager Energy Infrastructure Partners (EIP) is set to raise its stake in Eni's renewable and retail unit, Plenitude, to 10% through a share subscription valued at approximately €209 million. The agreement values Plenitude at over €10 billion, including debt, reflecting the unit's robust positioning in the renewable energy and retail sector.
Eni, the Italian energy giant, introduced the deal as part of its “satellite” strategy, which seeks to create independent business units to attract substantial external investments to drive growth in low-carbon and renewable initiatives. Chief Transition and Financial Officer Francesco Gattei highlighted that this structure is designed to foster self-sustaining, organic growth in Eni's decarbonization businesses, stating, “We have embarked on a virtuous path of creating low and zero-carbon businesses that attract leading investors, grow organically, and become self-sustaining.”
This move follows Eni's recent partnership with U.S.-based KKR, which invested €2.94 billion for a 25% stake in Eni's biofuel subsidiary, Enilive. Additionally, Eni is in discussions with potential investors, including Italian gas operator Snam, exploring partnerships for its carbon capture and storage (CCS) business.
Swiss EIP first entered Plenitude in March, purchasing a 7.6% stake for €588 million with an intention to expand its involvement. EIP partner Tim Marahrens expressed the firm's confidence in the unit's potential, affirming, “Our decision to increase the size of our investment reconfirms our strong belief in the value of the business.”
Eni's Plenitude generates power from renewable sources, with an installed capacity of over 3 GW, and services around 10 million customers for gas and electricity. The unit also supports electric mobility with a network of 21,000 EV charging points. By 2027, Plenitude aims to increase its customer base to over 11 million, expand its renewable capacity to 8 GW, and install 40,000 charging points across Italy and other markets.
Financially, analysts at Italian brokerage Equita noted that the deal implies a valuation multiple of around 10 times Plenitude's core earnings, marking a favorable comparison with the broader group's multiple of three, potentially bolstering Eni's share value, which rose 1.4% by midday trading in Milan.
