KKR is in talks with Eni about buying a stake in the Italian energy group’s biofuel arm that could value the business at between €11.5bn and €12.5bn including debt. The US private equity firm is in discussions with Eni about purchasing a stake of up to 25 per cent in Enilive, worth as much as €3.1bn, which is higher than some analysts’ estimates. Eni aims to use the money raised from any deal to fund its diversification strategy from oil and gas to renewable energy.
That deal with Energy Infrastructure Partners gave Plenitude an enterprise value of more than €10bn, which includes debt.KRR’s interest in Enilive is despite signs of cooling investor interest in biofuels because of weak financial returns and a lack of regulatory support from governments. Biofuels are more sustainable than crude-based fuels.