Italy’s Eni to sell stake in biofuel unit to KKR

Eni signs agreement with KKR to sell stake in Enilive Unit: Italian energy giant Eni has entered a temporary exclusivity agreement with US private equity firm KKR to sell a 20% to 25% stake in its biofuel unit Enilive, according to a press release. Enilive is valued between EUR 11.5 bn and EUR 12.5 bn, meaning the potential sale could be worth over EUR 3 bn.

More to come? Eni is considering selling an additional 10% of its subsidiary based on the strong interest from financial investors during this period, according to the company’s statement.

We’ve been expecting this: Eni announced its plans to complete a minority stake sale of its biofuel unit by the end of the year in June. The sale is part of Eni’s strategy to create separate specialized entities called satellites with the support of investors, according to Chief Executive Claudio Descalzi. As part of the strategy, Eni also began efforts to sell its 10% stake in its retail and renewable unit Plenitude for USD 800 mn last year and completed the sale in March.