Latest news with #Plenitude
Yahoo
16-05-2025
- Business
- Yahoo
Eni's Renewable Arm Plenitude Attracts Investment Interest From Ares
Eni S.p.A E, an Italian multi-energy company, has announced that it is exploring the sale of a 20% stake in its renewable and retail business Plenitude. The company has engaged in exclusive discussions with Ares Alternative Credit Management, a leading global alternative investment manager. The deal is part of Eni's 'satellite' strategy, which focuses on creating specialized business units in the low-carbon energy space or upstream projects. These units are structured to attract investments from external financial partners. The sale of a 20% stake in Plenitude demonstrates Eni's efforts to develop greener, low-carbon businesses. The company is in discussions with Ares to move forward with the deal. Notably, the negotiations related to the transaction are based on Plenitude's equity value, which is estimated to lie between 9.8 billion and 10.2 billion euros. Eni has also stated that the value may increase further to over 12 billion euros, considering debt. Eni believes that by selling small stakes in its business units, it can support capital expenditures related to low-carbon business while also maintaining its capacity to invest in upstream projects. The Italian energy firm stated that the agreement followed a rigorous and careful selection procedure, which involved several international players who expressed their interest in the company. Eni's exclusive discussions with Ares also underpins the interest shown by the alternative investment manager in the company. This demonstrates the attractiveness of the business model and its future growth prospects. Under its satellite strategy, Eni has executed the sale of a stake in Plenitude, bought by Energy Infrastructure Partners ('EIP'). EIP had previously acquired a 10% stake in Plenitude via two transactions. Additionally, Eni sold a 30% interest in its biofuel unit Enilive to KKR, a U.K.-based investment firm. The company is also in talks with Malaysia's state-owned energy firm, Petronas, to create a joint venture (JV) that will manage its oil and gas assets in Indonesia and Malaysia. E currently carries a Zacks Rank #5 (Strong Sell). Some better-ranked stocks from the energy sector are Diversified Energy Company plc DEC, Expand Energy Corporation EXE and RPC, Inc. RES, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Diversified Energy Company is an independent oil and natural gas producer in the United States. The company is primarily engaged in the production, transportation, and marketing of natural gas and natural gas liquids. The rising demand for natural gas as a cleaner-burning fuel and an uptick in the commodity's prices are expected to positively impact the company's bottom line. Expand Energy is a leading U.S.-based natural gas producer formed through the merger of Chesapeake Energy Corporation and Southwestern Energy Company. Natural gas is expected to play an increasingly important role in the energy transition journey. Expand Energy is poised to benefit from the rising demand for natural gas as a cleaner-burning fuel. The recent rise in natural gas prices is also anticipated to positively impact EXE's profitability. RPC generates strong and stable revenues through a diverse range of oilfield services, including pressure pumping, coiled tubing and rental tools. RPC is strongly committed to returning value to shareholders through consistent dividend payments and share buybacks, making it an attractive choice for investors seeking steady returns. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Eni SpA (E) : Free Stock Analysis Report Diversified Energy Company PLC (DEC) : Free Stock Analysis Report RPC, Inc. (RES) : Free Stock Analysis Report Expand Energy Corporation (EXE) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16-05-2025
- Business
- Yahoo
Eni to divest 20% stake in Plenitude to Ares for over $13bn
Italian energy giant Eni has entered an exclusivity agreement with Ares Alternative Credit Management for the potential sale of a 20% stake in its energy subsidiary, Plenitude. The equity value for this transaction is estimated at between €9.8bn ($10.9bn) and €10.2bn, leading to an enterprise value exceeding €12bn. The decision to negotiate with Ares comes after a comprehensive selection process that drew interest from numerous international investors, highlighting the attractiveness of Plenitude's business model and growth potential. The agreement is part of Eni's "satellite" model, which focuses on creating distinct divisions for either low-carbon enterprises or upstream initiatives, according to a Reuters report. These specialised units are designed to attract investment from financial collaborators. Eni chief transition and financial officer Francesco Gattei recently said that Eni can finance capital expenditure in low-carbon ventures by selling minority stakes in its subsidiaries, while still maintaining its ability to invest in oil and gas operations. Last year, Eni sold a 10% interest in Plenitude to Energy Infrastructure Partners (EIP) through a capital increase of approximately €209m, bringing the total investment by EIP to €800m (SFr748.3m). In addition to the exclusivity agreement, Eni has announced the initiation of a new share buyback programme, authorised by shareholders on 14 May 2025. The programme, to be executed by April 2026, will target the repurchase of up to 315 million shares, or roughly 10% of Eni's share capital, for a maximum of €1.5bn. This figure could rise to €3.5bn if favourable cash flow scenarios materialise. The purpose of the share buyback is to provide shareholders with additional returns beyond dividends. Acquired treasury shares will be cancelled by July 2026 without reducing share capital, as per the shareholders' meeting resolutions. The buyback transactions will be conducted on the Euronext Milan via an independent authorised agent and will be disclosed in compliance with applicable laws and regulations. Furthermore, Eni has commenced gas production at the Merakes East field off the coast of Indonesia. Eni, holding an 85% operating interest, anticipates the field will contribute up to 100 million standard cubic feet per day of gas, equating to around 18,000 barrels of oil equivalent per day. "Eni to divest 20% stake in Plenitude to Ares for over $13bn" was originally created and published by Offshore Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
15-05-2025
- Business
- Yahoo
Eni In Talks to Sell 20% of Its $13-Billion Low Carbon Unit Plenitude
Eni has launched exclusive talks with investment fund Ares Alternative Credit Management to potentially sell 20% in its low-carbon energy business Plenitude, which has an enterprise value of over $13.4 billion (12 billion euros), the Italian energy giant said on Thursday. 'The agreement follows a thorough selection process involving several prominent international players who expressed strong interest in the company, further confirming the great appeal of its business model and its growth prospects,' Eni said in a brief statement. At the end of 2023, Eni agreed to sell 9% in Plenitude to Energy Infrastructure Partners (EIP). Plenitude is active in the market of power generation including renewable energy sources, the sale of energy and energy solutions, and an extensive network of EV charging points. For years, Eni has been taking a different approach to conventional and green energy development, unlike any of the other major international oil and gas firms. The Italian major is divesting or creating joint ventures to operate oil and gas assets internationally while grouping some low-carbon initiatives and projects into separate firms. Eni says that its so-called 'satellite model' of managing various divisions is based on creating separate entities that can independently access capital markets to finance their own growth and be suitable for specialized investors. 'By being open to new investments, the satellite model allows us to reduce the capital absorption required to support new businesses, while safeguarding shareholder remuneration, which continues to be fed by the Free Cash Flow generated by traditional activities,' the Italian energy group says. Francesco Gattei, Chief Transition & Financial Officer, Chief Operating Officer, and General Manager of Eni, notes that 'satellites are the way we solve the energy transition equation, by managing new and traditional businesses and growing in both while ensuring continuity and security of sources, the availability of financing while pursuing all our business objectives.' By Tsvetana Paraskova for More Top Reads From this article on
Zawya
15-05-2025
- Business
- Zawya
Eni moves to sell stake in Plenitude to Ares, based on $13bln value
MILAN - Italy's Eni has entered exclusive talks with investment fund Ares Alternative Credit Management over the sale of a 20% stake in its renewable and retail arm Plenitude, the energy group said on Thursday. Negotiations are based on an equity value of Plenitude between 9.8 and 10.2 billion euros, corresponding to a value of more than 12 billion euros ($13.4 billion), including debt, Eni said in a statement. The deal is part of Eni's so-called 'satellite' strategy, which aims to develop specialised units dedicated to low-carbon businesses or upstream projects that can attract investments from financial partners. "The agreement follows a thorough selection process involving several prominent international players who expressed strong interest in the company, further confirming the great appeal of its business model and its growth prospects," the Italian group said. Mediobanca is acting as financial adviser for Eni, while UniCredit and Deutsche Bank are advising Ares Alternative Credit Management on the deal. Under the satellite strategy, Eni has already opened up the capital of Plenitude to Switzerland's Energy Infrastructure Partners (EIP) in two transactions that brought the asset manager to get a 10% stake in the unit. EIP valued Plenitude at over 10 billion euros, including debt, in the last deal completed in March. Earlier this year U.S. investment fund KKR acquired a total 30% of the energy group's biofuel unit Enilive with overall proceeds for Eni of 3.6 billion euros. ($1 = 0.8939 euros)
Wall Street Journal
15-05-2025
- Business
- Wall Street Journal
Eni in Talks to Sell Plenitude Stake to Ares for Up to $2.3 Billion
Eni ENI -0.21%decrease; red down pointing triangle said it is in exclusive talks to sell a 20% stake in its Plenitude low-carbon unit to Ares Management's alternative-credit arm for up to 2.04 billion euros ($2.28 billion). The Italian energy major said Thursday that it agreed to enter into an exclusivity period with investment fund Ares Alternative Credit Management to discuss a definitive deal for the sale of a 20% stake in Plenitude.
