Eni(E) ZACKS·2025-04-10 11:55Core Viewpoint - Eni SpA is advancing its strategy to sell a minority stake in its retail and renewables business, Plenitude, with an expected valuation exceeding €10 billion (~$11 billion) including debt [1][2]. Group 1: Stake Sale Details - Eni has received binding offers from five bidders for a further stake in Plenitude, indicating strong investor interest despite market volatility [2][3]. - The exact size of the stake being offered and the identities of the bidders have not been disclosed [3]. - Eni is entering negotiations regarding governance terms and contract specifics with potential investors [3]. Group 2: Strategic Context - The sale aligns with Eni's "satellite strategy," aimed at raising funds to support energy transition by divesting stakes in high-growth units [4]. - Recently, Eni sold 30% of its biofuels unit Enilive to KKR, a U.S.-based private equity firm [4]. - Over the next four years, Eni anticipates its satellite operations, including Plenitude and Enilive, to generate approximately €13 billion in cash flow [5]. Group 3: Valuation Insights - There are reports suggesting Plenitude's valuation could rise to €13 billion, although Eni's CFO did not confirm these figures but indicated a premium over the previous valuation [6][7]. - The strong interest from global investors and a clear capital deployment roadmap suggest Eni is balancing energy transition goals with financial prudence [7].