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.
