(Alliance News) - Swiss asset manager Energy Infrastructure Partners - EIP is reportedly interested in taking over a minority stake in Plenitude Spa, owned by Eni Spa, two sources familiar with the matter told Reuters.

Eni, which had to freeze Plenitude's initial public offering last year due to adverse market conditions, still aims to list it. Selling a stake in the subsidiary would give it value, making a future listing easier, the sources explained.

Eni and EIP declined to comment.

Last week, three different sources had told Reuters that Eni was intensifying talks with several potential investors on Plenitude, without naming any partners.

Eni's renewable energy and retail unit could be valued at more than EUR6 billion in a private transaction, one of the sources had said.

Eni is working on selling a stake of between 5 percent and 15 percent in Plenitude and could also close a deal before August, the sources said.

In February, Norwegian private equity firm HitecVision entered into negotiations with Eni to acquire a minority stake in the subsidiary but no deal has since materialized.

As Reuters points out, in order to develop Plenitude and its other subsidiaries, Eni is applying a "satellite" approach that aims to create independent units specializing in specific activities that can attract investors focused on those businesses.

Plenitude generates energy from renewable sources, sells electricity, gas, and energy services to households and businesses, and is developing a network of charging points for electric vehicles.

Eni's stock is up 0.3 percent at EUR12.86 per share.

https://www.reuters.com/business/energy/eni-discussing-low-carbon-unit-stake-sale-with-switzerlands-eip-sources-2023-06-21/

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

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