Energy Infrastructure Partners to acquire 9% stake in Plenitude post €700m investment
In a significant move within the energy sector, Eni’s renewable energy arm, Plenitude, and Energy Infrastructure Partners (EIP) have entered a strategic agreement. EIP will invest up to €0.7 billion in Plenitude, acquiring approximately 9% of the company’s share capital after the transaction.
Initial Capital Increase and Valuation
The deal initially involves a capital increase of €0.5 billion, with an option for EIP to invest up to €0.7 billion by early 2024. This investment values Plenitude at an Equity Value post money of around €8 billion and an enterprise value of over €10 billion, highlighting its significant market position.
Plenitude’s Market Position Strengthened by €0.7 Billion Capital Boost from Eni Plenitude Energy Infrastructure Partners
Claudio Descalzi’s Commentary on the Transaction
Eni CEO, Claudio Descalzi, commented on the deal’s importance, stating, “We have achieved an excellent transaction. Thanks to it we highlight the value of Plenitude within Eni; we strengthen Plenitude’s financial structure to further support its energy transition and growth path; and we establish a long-term partnership with a leading international financial investor capable of contributing to Plenitude’s value creation.” Descalzi emphasized the transaction’s role in improving Eni’s capital structure and advancing its satellite model development, which aims at enhancing high-potential businesses.
Plenitude’s Distinctive Business Model and Growth Prospects
Plenitude operates with a unique business model that integrates power generation from renewables, the sale of energy and energy solutions, and an extensive network of EV charging points. Currently supplying energy to approximately 10 million European customers, the company targets over 11 million customers by 2026. Plenitude plans to expand its installed renewable capacity to over 7 GW by 2026 and 15 GW by 2030, up from 2.2 GW at the end of 2022. Additionally, the company aims to establish over 30,000 EV charging points by 2026. The EBITDA of Plenitude is expected to triple over the 2022-2026 period, reaching €1.8 billion, reflecting its strong operational and financial performance.
In conclusion, the strategic investment by Energy Infrastructure Partners in Plenitude represents a significant step in the energy transition pathway, bolstering Plenitude’s market position and financial structure, and aligning with Eni’s strategy for sustainable energy development and market expansion.