KKR to Acquire 25% Stake in Enilive

Eni, Italy’s energy giant, and KKR, global investment firm, on Thursday said that they have signed an agreement under which KKR will take a 25% stake in the share capital of Enilive, Eni’s mobility transformation company, for $3.17 billion.

The transaction will be funded through the subscription of a capital increase in Enilive reserved to KKR amounting to $539.03 million, purchase of Enilive’s shares from Eni for a value of $2.63 billion, corresponding to a post-money valuation of $12.67 billion of Equity Value for 100% of Enilive’s share capital.

Furthermore, Eni will undertake a capital increase of $539.03 million prior to the completion of the transaction to set a debt-free company. Closing of the transaction is subject to customary approvals provided by law.

The transaction brings together Eni’s proven ability to develop high-growth energy businesses and KKR’s expertise as a long-term investor with a strong track record in the energy and infrastructure sectors, further contributing to the growth of Enilive.

The transaction represents a significant development of Eni’s satellite model, aimed at creating the conditions for independent growth of high potential businesses, granting the access to new pools of aligned capital and providing visibility into their fair market value.

The transaction also confirms the effectiveness of Enilive’s distinctive integrated model and strengthens at the same time its financial structure.

Significant for Energy Transition

Eni CEO Claudio Descalzi said that this agreement is a significant further step in their business strategy related to the energy transition. Enilive, alongside Plenitude, is central to Eni’s commitment to providing decarbonised energy solutions and progressively reducing emissions from the end use of our products.

He said that both companies have attracted significant interest from leading international partners and achieved high market valuations, which indicated that their approach to the energy transition is appreciated.

“We believe that the right path to successfully address the transition entails the creation of low or zero-carbon businesses that respond to a real and existing demand for energy products and that grow independently thanks to the success of their business models and products. With KKR’s support, Enilive is poised to capitalize on its ambitious growth plans and continue delivering real, scalable energy transition solutions,” he added.

Alberto Signori, Partner in KKR’s European Infrastructure team, said that Enilive is a key player in advancing the energy transition and the deal aligns with their strategy to support transformative energy projects across Europe.

“With our global infrastructure platform and local expertise, we’re excited to help Enilive scale its impact in decarbonising transportation and expand internationally. We look forward to contributing to its continued growth and success,” Signori added.

KKR in Italy

KKR has been consistently investing in Italy across asset classes since 2005, with a commitment to supporting the country’s economic and social development. Most recently, KKR announced the closing of its acquisition of Telecom Italia’s fixed-line network and incorporation into FiberCop, creating the most extensive Italian broadband network serving around 16 million households and helping to fast-track the digital transition in Italy.

KKR is making the investment in Enilive through its Global Infrastructure Strategy. The firm first established its Global Infrastructure Strategy in 2008 and has since been one of the most active infrastructure investors around the world, currently managing over $73 billion in infrastructure assets.