Eni Sells 20% Stake in Plenitude to Ares for 20 Billion Euros

Italian energy giant Eni has agreed to sell a 20% stake in its renewable energy subsidiary, Plenitude, to Ares Alternative Credit Management for approximately 20 billion euros. This transaction is the second time Eni has divested shares in Plenitude, following an earlier sale of a 10% stake to Energy Infrastructure Partners earlier this year. The sale is based on a 100 billion euro valuation of Plenitude's equity, corresponding to an enterprise value of over 120 billion euros.

This divestment is part of Eni's broader strategy to sell minority stakes in certain businesses while retaining control, and to gradually exit activities related to hydrocarbons. By the end of this year, Eni is expected to complete the sale of its carbon capture and storage business unit. Plenitude was established by Eni to integrate its energy retail and renewable energy businesses. The company had previously announced that it would postpone its initial public offering plans due to market conditions.

Ares, which manages assets of nearly 550 billion euros, recently established an office in Milan, Italy's financial hub, to expand its local business operations. The firm sees this acquisition as a strategic opportunity to enter the renewable energy sector, leveraging Plenitude's strong market position and innovative technologies. Ares plans to support Plenitude's continued growth and development, utilizing its financial resources and industry expertise to drive further innovation and expansion.

The transaction is expected to close in the coming months, subject to regulatory approvals and customary closing conditions. Both Eni and Ares are optimistic about the deal, which they believe will create value for both parties and contribute to the growth of the renewable energy sector. This divestment underscores Eni's commitment to strategic portfolio management and its focus on maximizing shareholder value, while Ares' investment highlights the growing interest in renewable energy as a viable and profitable sector.