(Bloomberg) -- Enel SpA agreed to sell a 49% stake in its energy storage unit to Italian asset manager Sosteneo, in a €1.1 billion ($1.19 billion) deal aimed at cutting its debt.

Sosteneo, which is backed by Generali Investments, is expected to complete the stake purchase of Enel Libra Flexsys by the end of the first half of the year, according to a statement Friday.

The unit uses industrial-scale batteries used to store energy created from renewable sources that will eventually be inserted into the national electric grid. It has 23 battery storage systems with a total capacity of 1.7 gigawatts.

The deal is part of a new strategy unveiled by the utility company to sell minority stakes in the storage unit to meet its debt-cutting targets.

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