Energy Infrastructure Partners has invested €209 million (about $222.7 million) to increase its stake in Plenitude, the renewables unit of Italian energy giant Eni—the latest in a string of energy transition infrastructure deals.
EIP first acquired a 7.6% stake in Plenitude in March for €588 million and has now built up its stake to 10% at a total investment of €800 million. The latest deal gives Plenitude a post-money equity value of €8 billion and an enterprise value of over €10 billion.
This is Eni’s second deal in three weeks as the company looks to run on a satellite model by spinning off divisions of businesses.
KKR agreed to acquire a 25% stake in Enilive, Eni’s biofuel and sustainable mobility unit, for €2.94 billion. The deal values Enilive at €11.75 billion including debt.
The energy transition infrastructure sector—which includes renewable and low-carbon energy assets, electric vehicle charging infrastructure and carbon capture assets—is expected to see good returns over the next decade thanks to technological improvements and increased government support bringing down operating costs.
On the other hand, the space is also expected to see increasing competition as the most accessible fossil fuel reserves are depleted.
The median IRR for funds specializing in energy transition infrastructure with vintages between 2014 and 2019 rose to 9.3%, compared with fund vintages between 2008 and 2013, according to a recent PitchBook analyst note about infrastructure funds and the energy transition.
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