Eni (BIT: ENI) agreed to sell about 9% of its Plenitude renewables unit to Energy Infrastructure Partners AG for €700 million ($766 million) via a capital increase to be completed in early 2024.
The deal from the Italian oil major sets an equity value for Plenitude at around €8 billion, according to an Eni statement on Thursday.
Bloomberg News reported last month that the energy company was nearing a deal with EIP.
Rome-based Eni entered into talks with EIP, a Zurich-based fund, on a potential deal earlier this year, as it sought a partner for the unit in the run-up to a future stock market listing.
Plenitude sells energy to households and businesses, produces renewable power, and runs electric vehicle charging stations. It serves about 10 million retail clients across Europe, operating in 15 countries globally.
The deal will “further improve Eni’s capital structure, reducing consolidated net leverage and strengthening the capital base, a key in the development of our growth model,” Chief Executive Officer Claudio Descalzi said in a statement.
The plan to list Plenitude was postponed last year with Europe in the throes of an energy crisis, but Eni still aims to proceed with the listing on the Euronext Milan exchange when market conditions permit, likely in 2024, Descalzi has said.
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