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Eni SpA E, the Italian energy giant, is moving forward with its plan to sell another minority stake in Plenitude, its retail and renewables business. According to a senior executive at E, the company expects the unit to be valued at over €10 billion (~$11 billion), including debt.
E Eyes Premium Valuation for Plenitude Amid Investor Interest
Speaking at an energy conference in Ravenna, Eni’s chief transition and financial officer, Francesco Gattei, confirmed that the company has received binding offers from five bidders for a further slice of Plenitude. He expressed confidence that the offers reflect a higher valuation than the previous deal, in which Swiss fund Energy Infrastructure Partners acquired a stake valuing the business at €10 billion. He noted that investor interest remains strong despite recent market turbulence driven by U.S. tariff developments.
Eni has not disclosed the exact size of the stake on offer or the identities of the bidders. It is entering the next phase, where it will negotiate governance terms and contract specifics with potential investors.
Plenitude Sale Aligns With E’s Long-term Transition Strategy
Eni’s move is part of its broader “satellite strategy,” which aims to raise funds to support the energy transition by selling stakes in high-growth units to institutional investors. Last month, the company sold 30% of its biofuels unit Enilive to U.S.-based private equity firm KKR.
Gattei noted that over the next four years, Eni expects its satellite operations, including Plenitude and Enilive, to generate about €13 billion in cash flow. These divestments not only help unlock value but also allow Eni to share the investment burden of the energy transition with global capital partners.
While reports have suggested that Plenitude’s valuation could rise to as much as €13 billion, Gattei refused to comment on those figures. However, he hinted at a premium over the earlier valuation secured in the initial transaction.
With robust interest from global investors and a clear roadmap for capital deployment, Eni appears to be striking the right balance between energy transition ambitions and financial prudence. With the finalization of the next round of offers, all eyes will be on whether the valuation crosses the rumored €13 billion mark, setting a new benchmark for renewables-focused spinoffs in Europe.
E’s Zacks Rank & Key Picks
E currently has a Zack Rank #3 (Hold).
Investors interested in the energy sector may look at some better-ranked stocks like Archrock Inc. AROC, Delek Logistics Partners, LP DKL and Kinder Morgan, Inc. KMI. While Archrock and Delek Logistics Partners presently sport a Zacks Rank #1 (Strong Buy) each, Kinder Morgan carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.