KKR agrees to acquire 25% stake in Enilive for more than $3 billion
Following the signing of an exclusivity agreement in July for the potential sale of a minority stake in Enilive, the Italian energy company Eni announced Oct. 24 that it and KKR have signed an agreement under which KKR will take a 25 percent stake in Enilive’s share capital for a total agreed consideration of nearly 2.94 billion euros (USD$3.17 billion).
The transaction will be funded through:
The subscription of a capital increase in Enilive reserved to KKR amounting to 500 million euros (USD$540 million).
The purchase of Enilive’s shares from Eni for a value of nearly 2.44 billion euros (USD$2.63 billion), corresponding to a post-money valuation of 11.75 billion euros (USD$12.69 billion) of equity value for 100 percent of Enilive’s share capital.
Furthermore, according to the agreement, Eni will undertake a capital increase in Enilive of 500 million euros (USD$540 million) prior to the completion of the transaction to set a debt-free company.
The transaction brings together Eni’s proven ability to develop high-growth energy businesses and KKR’s expertise as a long-term investor with a strong track record in the energy and infrastructure sectors, further contributing to the growth of Enilive.
Moreover, the investment enhances Eni’s capital structure, reducing its net financial position while ensuring that Eni retains consolidation and control of Enilive.
The deal represents a significant development of Eni’s satellite model aimed at creating the conditions for independent growth of high-potential businesses, granting the access to new pools of aligned capital and providing visibility into their fair market value.
The transaction also confirms the effectiveness of Enilive’s distinctive integrated model and strengthens its financial structure at the same time.
“This agreement marks a significant further step in our business strategy related to the energy transition,” said Eni CEO Claudio Descalzi. “Enilive, alongside Plenitude, is central to our commitment to providing decarbonized energy solutions and progressively reducing emissions from the end use of our products. Both companies have attracted significant interest from leading international partners and achieved high market valuations, which indicates that our approach to the energy transition is appreciated. We believe that the right path to successfully address the transition entails the creation of low- or zero-carbon businesses that respond to a real and existing demand for energy products and that grow independently thanks to the success of their business models and products. With KKR’s support, Enilive is poised to capitalize on its ambitious growth plans and continue delivering real, scalable energy-transition solutions.”
Closing of the transaction is subject to customary approvals provided by law.
