US fund KKR has signed an agreement to acquire a 25% stake in Italian energy giant Eni's biofuel subsidiary, Enilive, for a consideration of €2.93bn ($3.17bn).
The transaction will be financed through a capital increase in Enilive reserved for KKR, totalling €500m, along with the acquisition of Enilive shares from Eni for €2.44bn. This results in a post-money valuation of €11.75bn for 100% of Enilive's equity.
This financial move is set to enhance Enilive's growth trajectory by combining Eni's expertise in developing high-growth energy businesses with KKR's long-standing investment experience in the energy and infrastructure sectors.
As per the agreement, prior to the finalisation of the transaction, Eni will undertake a €500m capital increase in Enilive to establish a debt-free company.
The collaboration between Eni and KKR is expected to contribute significantly to the expansion of Enilive, while also improving Eni's capital structure by reducing its net financial position.
This deal allows Eni to maintain control of Enilive.
It also marks a significant advancement in Eni’s satellite model, designed to foster the independent growth of high-potential businesses. It facilitates access to new sources of aligned capital and enhances visibility into their fair market value.
Eni Ceo Claudio Descalzi commented: “This agreement marks a significant further step in our business strategy related to the energy transition. Enilive, alongside Plenitude, is central to our commitment to providing decarbonised energy solutions and progressively reducing emissions from the end use of our products.
“Both companies have attracted significant interest from leading international partners and achieved high market valuations, which indicates that our approach to the energy transition is appreciated.
“We believe that the right path to successfully address the transition entails the creation of low or zero-carbon businesses that respond to a real and existing demand for energy products and that grow independently thanks to the success of their business models and products.”
