Oct 26, 2021
Eni Said to Value Renewables Unit Up to $17.4 Billion in IPO
(Bloomberg) -- Italy’s Eni SpA will seek a valuation of up to 15 billion euros ($17.4 billion) in the listing of its retail and renewables unit expected in 2022, people familiar with the matter said.
Recent acquisitions and expected growth for the business, in the wake of moves in clean energy and electric-vehicle charging, have led the Rome-based energy giant’s advisers to value the unit at between 12 billion euros and 15 billion euros, according to the people, who asked not to be named discussing confidential deliberations.
The company is planning to retain a majority stake in the unit following the IPO, which is set to be on the Milan exchange, according to one of the people.
Eni shares rose as much as 1.8% in Milan trading and hit their highest level since February 2020. The stock is up about 46% so far this year.
A spokesman for Eni declined to comment.
The transaction will help Eni expand its retail and renewables business and give investors visibility on the value of the unit, the company said Oct. 7.
The listing, at a moment when energy majors are seeking to squeeze more value out of their renewables portfolios, could be one of the largest corporate moves in the sector next year and one of the biggest Italian IPOs in the last two decades.
The unit will be financially independent with its own balance sheet and its investment grade credit rating will allow it to access debt at competitive costs, according to a statement at the time.
Eni’s outlook for cutting greenhouse gas emissions has been upgraded to global net-zero absolute emissions and intensity by 2050 compared with an earlier goal of an 80% reduction.
That puts the company ahead of most European peers, and Chief Executive Officer Claudio Descalzi has said cutting Eni’s so-called Scope 3 CO2 emission count is a top priority.
CO2 emissions not related to company assets account for more than 90% of Eni’s total, equal to 480 million tons per year, while Scope 1 and Scope 2-related activities account for 40 million tons, Descalzi said earlier this month.
Eni may be set to complete the acquisition of 100% of charging-service provider Be Power and merge the company with the unit it plans to list, daily Il Messaggero reported last week.
(Updates with shares in fourth paragraph, sector in seventh.)
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