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Funds approach Eni for second biofuel stake sale as it prepares handle KKR, sources say

Suitors have actually approached Eni over the potential sale of a 2nd stake in its biofuel unit Enilive as the Italian group discusses the final information of a deal to offer a stake in the unit to KKR, two sources said on Thursday.

The disposal of another portion of Enilive would be an even more indication of financiers' confidence in Eni's method of spinning off growth businesses in order to bring in funds.

The Italian energy group in July got in talks with U.S. investment company KKR over the sale of a 20-25% stake in Enilive, based upon a valuation of the company of in between 11.5 billion and 12.5 billion euros ($ 12.8-13.9 billion).

Three sources informed Reuters that negotiations with KKR could end effectively in the next 2 or 3 weeks. Among the sources stated that KKR would likely purchase 20% of Enilive.

The source also stated that Eni had been contacted by other suitors, including New York-headquartered investment company Stonepeak, about the possibility of offering another minority stake in Enilive.

Eni, KKR and Stonepeak declined to talk about the matter.

Under its so-called 'satellite' technique, the Italian group finalised a handle March to open the capital of its retail and sustainable system Plenitude to Swiss property supervisor Energy Facilities Partners (EIP).

Enilive owns numerous biorefineries in Italy and abroad that produce biofuels utilizing waste and grease partially coming from the group's agri-business in several African countries.

The company also makes biomethane, provides clever mobility services and owns a network of more than 5,000 multi-fuel stations in Europe.

Enilive is anticipated to tape-record core incomes of around 1.2 billion euros in 2025, up from 1 billion euros pencilled in for this year.

Biofuels, made from grease, waste cooking oil and grease, are expected to play a significant function in decarbonising the truck, aviation and shipping sectors in coming years.

(source: Reuters)