(Bloomberg) -- Eni SpA is nearing an accord with Energy Infrastructure Partners AG to sell just under 10% of its Plenitude renewables unit for around €750 million ($800 million), according to people familiar with the matter. 

Plenitude is set to be valued at about €8 billion in the deal, which could be announced by the end of this month, said the people, asking not to be named discussing private information. Talks are in the final stages but a definitive decision has not yet been reached, they said.

Italian oil and gas major 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.

Read More: Eni Boosts Full-Year Guidance as Profit Beats Estimates 

The sale of a stake could help Eni lock in the unit’s value while giving it more cash for investments, paving the way for an initial public offering as soon as next year. Eni Chief Executive Officer Claudio Descalzi acknowledged in late September that talks were ongoing with potential suitors for a stake in Plenitude.

Representatives for Eni and EIP both declined to comment.

Energy Crisis

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. 

The current valuation for the unit is higher than the €6 billion to €7 billion the state-controlled energy firm considered setting for it in mid-2022, people familiar with the matter said at the time.

Read More: Eni Delays Listing of Renewables Arm Amid Turbulent Markets 

Milan-based Plenitude, which is targeting around €900 million in Ebitda for this year, was set up to pool Eni’s energy retailing and renewables businesses. 

 

 

 

--With assistance from Tiago Ramos Alfaro and Paula Doenecke.

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