Oil major Eni in talks over Plenitude renewables arm stake sale
Italian group says Ares in negotiations over 20% share in unit that has interests in giant offshore wind projects
Oil major Eni is closing in on the sale of a 20% stake in Plenitude, its renewable energy arm with interests in some of the world’s largest offshore wind projects.
The Italian group said today (Thursday) it has entered exclusive negotiations with Ares Alternative Credit Management over the sale, based on an equity value of Plenitude between €9.8-10.2bn ($11-11.5bn) and an enterprise value of €12bn-plus.
The talks with Ares, described by Eni as a “globally significant” investor, followed interest from “several prominent international players who expressed strong interest in the company”, said the oil group.
The renewables unit’s interests include a 65% share in Vargronn, its offshore wind joint venture with Norway’s Hitec Vision. Vargronn has stakes in some of the world’s largest offshore wind project, including 20% of the 3.6GW Dogger Bank construction off northeast England and half of the planned Green Volt floating wind pioneer off Scotland.
Eni had already last year added Swiss asset manager Energy Infrastructure Partners (EIP) as a 10% stakeholder in Plenitude through a capital injection of €588m.
The oil group’s finance chief Francesco Gattei told shareholders earlier this year that either Plenitude – which also includes Eni’s retail power and e-mobility businesses – or its Enilive biofuels unit could be a candidate for an IPO.