Eni S.p.A. (NYSE:E) disclosed securing a temporary exclusivity agreement with KKR & Co. Inc. (NYSE:KKR) to advance due diligence and finalize documents for selling a 20% to 25% stake in Enilive, based on a valuation between €11.5 billion and €12.5 billion.

This move supports Eni's satellite model strategy, attracting valuable new partners and funding growth at favorable multiples, confirming the value of these new ventures.

The high interest from major institutional investors may result in the sale of an additional 10% stake in Enilive.

While the final deal depends on agreeing to definitive terms, both parties are committed to negotiating.

Also Read: Eni Sells Alaskan Upstream Assets To Hilcorp In Strategic Streamlining: Details

Biraj Borkhataria, head of Global Energy Transition Research at Royal Bank of Canada, said, "The valuation in the range of 11.5-12.5 billion euros is well above market expectations, which we think were in the range of 7-10 billion euros," reported Reuters.

As per the report, Enilive, which specializes in biorefining, biomethane production, and smart mobility, operates over 5,000 multi-fuel stations across Europe. It aims to double its biorefining capacity to over 3 million tons by 2026.

Recently, Eni extended its long-term agreement with Vår Energi ASA. Under the agreement, Vår Energi will supply Eni with up to five billion cubic meters (bcm) of gas between 2024 and 2036.

Investors can gain exposure to Eni via The Advisors? Inner Circle Fund Cambiar Aggressive Value ETF (NYSE:CAMX).

Price Action: E shares are down 0.39% at $30.43, while KKR shares are up 0.56% at $118.54 at the last check Tuesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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