Italian energy Eni SpA group has sold a 20 per cent holding in its renewable business Plenitude to Ares, a US-based alternative credit management firm

The deal is set at about $2.3 billion, marking the holding company’s second sale of a stake in the unit, reported Bloomberg.

Plenitude valued at $13 billion

The transaction is based on the value of Plenitude’s equity shares, which is around $11.4 billion. The enterprise value stood at more than $13.7 billion, the renewable business said in a statement.

Eni said in May it was in exclusive talks with the company over the sale, the news agency said.

“The valuation of Plenitude has positive implications for the stock as it allows further value to be unlocked in one of Eni’s satellites,” reported Bloomberg citing Massimo Bonisoli, an analyst at Equita Group SpA.

The company completed the sale of 10 per cent of Plenitude to Energy Infrastructure Partners earlier this year.

Milan stock index falls after sale

Italian energy Eni spa shares remained stable as of 10:33 am local time, while the Milan stock index fell by 0.6 per cent. Eni stock initially gained as much as 0.9 per cent.

The energy major has said it also plans to sell stakes in its businesses in biofuels and mobility arm Enilive, where US-based KKR & Co bought a 25 per cent holding earlier this year. It is in exclusive talks for a stake in its carbon capture and storage unit, the news agency said.

Plenitude IPO plans kept on hold Italian energy Eni spa

Milan-based Plenitude was set up to hold Eni’s energy retailing and renewables businesses. Initial plans for a public listing of Plenitude have been put on hold.

Ares, an alternative asset manager overseeing nearly $550 billion, has recently opened an office in Milan, Italy’s financial hub, in order to expand its business in that market.