Italian energy group Eni says it is in exclusive talks with investment firm KKR over the potential sale of a minority stake in Enilive. If it goes ahead, the deal could value the biofuel unit at up to €12.5 billion.
ADVERTISEMENTEni said in a statement on its website on Tuesday that it has signed a temporary exclusivity agreement with KKR, a leading global investment firm, aimed at progressing the due diligence phase and completing the drafting of the documents related to the sale of a 20% to 25% stake in Enilive.
The agreement was based on a valuation of the company between €11.5 billion and €12.5 billion, the Italian energy group said.
"While a final transaction is subject to agreeing definitive documentation, both parties are committed to negotiating the terms of a potential transaction. This step represents another example of the development of Eni's satellite model strategy, attracting strategically aligned capital from valuable new partners at attractive multiples, funding our growth and confirming the value we are creating in these new businesses," the Eni statement said.
The company also highlighted in the statement that the strong interest shown by leading institutional financial investors could lead to the subsequent sale of a further stake of up to 10% of Enilive.
Mediobanca is acting as financial advisor for Eni on the Enilive stake sale.
