KKR’s infrastructure arm is acquiring a 25% stake in a €11.8bn biorefining business owned by Italian multinational energy firm Eni.
KKR’s global infrastructure strategy has agreed to acquire a quarter interest in Enilive in a deal that involves a €500m subscription of a capital increase in Enilive and the purchase of €2.4bn of shares from Eni.
The agreement also involves Eni undertaking a capital increase of €500m prior to the transaction’s completion, with the aim of making the company debt-free company.
Eni said the transaction is expected to enhance its capital structure, reducing its net financial position while ensuring its continued consolidation and control of Enilive, a company focused on biofuels, biomethane, smart mobility and mobility services.
Claudio Descalzi, Eni’s CEO, said the agreement marks a “significant further step in our business strategy related to the energy transition”.
Descalzi added: “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 capitalise on its ambitious growth plans and continue delivering real, scalable energy transition solutions.”
Alberto Signori, partner in KKR’s European infrastructure team, said: “We are thrilled to strategically partner with Eni on this investment in Enilive, a key player in advancing the energy transition.
“This aligns with our strategy to support transformative energy projects across Europe.”
Stefano Ballista, Enilive’s CEO, said: “We are pleased with the entry of a significant partner like KKR into Enilive, who will ensure a strong support to our relevant growth path and in the transition towards an increasingly decarbonised offering for sustainable mobility.”
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