Italian energy group Eni is considering either a Milan listing for its sustainable mobility unit Enilive or selling a minority share to a specialised fund ahead of a subsequent float, daily Corriere della Sera reported on Friday.
The newspaper, citing several unnamed sources, said that the company has tapped Mediobanca and JP Morgan to test investor interest for the unit which could have a value of some 10 billion euros ($10.83 billion).
JP Morgan and Eni declined to comment. Mediobanca did not immediately reply to a request for comment.
Under Chief Executive Claudio Descalzi, Eni is applying what it calls a “satellite” approach to create independent units specialising in specific activities and able to attract investors focused on those businesses.
“The news is consistent with Eni’s satellite strategy. We continue to believe that this process (of developing Enilive as a separate business) could be a positive catalyst for Eni’s stock,” Italian broker Equita said in a report on Friday.
Enilive, title sponsor until 2027 of Italy’s top-flight Serie A soccer league, owns biorefining and biomethane assets, a network of fuel stations as well as smart mobility solutions, including vehicle sharing company Enjoy.
Last year the unit posted proforma core earnings of 1 billion euros, in line with the guidance indicated by the group.
In December Eni agreed to sell a 9% stake in its low-carbon and retail unit Plenitude to Energy Infrastructure Partners (EIP) through a deal that values the unit at 10 billion euros including debt.
Source: Reuters.com