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Eni working with JP Morgan to sell minority stake in power unit - sources

Reuters
Reuters
 2021-09-17
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MILAN (Reuters) -Italian energy group Eni is working with JP Morgan to sell a minority stake in its power generation unit Enipower to help it fund its shift to a low-carbon business, sources said.

Non-binding bids are expected in two to three weeks, one of the sources said, adding the group was looking to sell a stake of around 40%.

The second source said infrastructure and investment funds had expressed an interest in the deal but no industrial players had as yet come forward.

A stake of up to 49% could be worth as much as 600 million euros ($704 million), the source said, but added selling fossil fuel assets in the energy transition was more difficult than in the past.

Eni and JP Morgan declined to comment.

Eni, which has pledged to be carbon neutral by 2050, is restructuring its business as it transitions into renewable energy and gradually tapers off its oil and gas output.

It has merged its retail and renewable businesses and is working on a possible listing of the unit next year.

Enipower operates five gas-fired Combined Cycle Gas Turbines (CCGT) plants and one co-generation plant in Italy for an overall capacity of around 5 gigawatts.

($1 = 0.8522 euros)

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