Eni Signs Exclusive Deal with KKR for Possible Minority Stake Sale in Enilive

Eni has signed a temporary exclusivity agreement with KKR, a leading global investment firm, to progress due diligence and complete the documentation for the possible sale of a 20% to 25% stake in Enilive. The proposed transaction is based on a valuation of Enilive ranging between 11.5 billion and 12.5 billion euros. While the final agreement depends on the completion of definitive documentation, both Eni and KKR are committed to negotiating the terms of this potential deal.

This agreement highlights Eni's strategic approach to its satellite model, aimed at attracting capital from strategically aligned partners. By bringing in new investors at attractive multiples, Eni aims to fund its growth and validate the value generated in its emerging businesses. The interest from leading institutional financial investors during this period underscores the attractiveness of the opportunity and could potentially lead to the sale of an additional stake of up to 10% in Enilive.

The exclusivity agreement marks a significant step in Eni's strategy to leverage its satellite model for growth. It demonstrates the company’s ability to attract high-quality investment partners and secure favorable terms for its business ventures. By engaging with KKR, Eni is positioning itself to enhance its financial strength and support the expansion of its new business initiatives. The potential transaction, pending the finalization of documentation, reflects a strong commitment from both parties to the successful completion of the deal.

Enilive is Eni's specialized division concentrating on biorefining, biomethane production, smart mobility solutions, and the distribution of various energy carriers for transportation. With more than 5,000 Enilive Stations throughout Europe, the company provides a wide array of products, including HVOlution biogenic fuel (100% Hydrogenated Vegetable Oil), bio-LPG, and biomethane. These stations also provide services such as electric vehicle recharging and food options, including Eni Café, Italy's largest café chain, and ALT Stazione del Gusto, a new venture in collaboration with Accademia Niko Romito.

Enilive's mission is to deliver increasingly decarbonized services and products to support the energy transition, aligning with Eni's goal of achieving carbon neutrality by 2050. This commitment is reflected in its industrial assets, which include the Venice and Gela biorefineries in Italy, St. Bernard Renewables LLC (a 50% joint venture with PBF Energy) in Louisiana, and 22 biomethane production plants in Italy. In January 2024, Eni revealed plans to convert the Livorno refinery into a biorefinery and is also exploring the development of new biorefineries in Malaysia and South Korea.

Enilive plans to expand its biorefining capacity significantly, targeting more than 3 million tons by 2026—double its capacity at the end of 2023—and aims to exceed 5 million tons per year by 2030.