Eni to Sell Stake in Gas&Power Retail, Renewable Unit in IPO

(Bloomberg) -- Eni SpA will sell a minority stake of its Gas&Power retail and renewable businesses in an initial public offering.

The Italian oil giant will keep a majority stake in the unit following the IPO which is expected to be completed in 2022, it said in a statement Thursday.

Eni said in April it was reviewing options aimed at maximizing the value of the newly created unit. The Italian company may raise over 2 billion euros ($2.3 billion) in the IPO, Italian daily MF reported earlier this week.

The unit is on target to develop more than 6 GW of renewable capacity by 2025 and more than 15 GW by 2030, with its retail customer base growing from 10 million customers today to over 15 million over the same period, Eni said. 

Eni sees earnings before interest, taxes, depreciation, and amortization of the unit, which it calls Eni R&R, to double to 1.2 billion euros in 2025 from 2021. 

(Updates with unit’s Ebitda estimates in last paragraph)

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