Home Energy assets Sixth Street Partners in final talks to buy stake in Eni power unit – sources

Sixth Street Partners in final talks to buy stake in Eni power unit – sources

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The logo of Italian energy company Eni is seen on a stand during the Nigeria International Petroleum Summit in Abuja, Nigeria February 11, 2020. REUTERS/Afolabi Sotunde/File Photo

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MILAN, Jan 14 (Reuters) – U.S. investment firm Sixth Street Partners has become the lead bidder for Italian energy group Eni’s power generation unit and is in advanced talks to buy a minority stake in the business , three sources told Reuters on Friday. .

Eni, advised by JPMorgan, is seeking to sell a stake of up to 49% in Enipower in a deal that could value the company up to 1.2 billion euros ($1.4 billion), a said one of the sources familiar with the matter.

The sale is expected to close by the end of the first quarter, the source said.

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BlackRock (BLK.N) also considered an offer for the asset but a source familiar with the talks said interest in the fund had cooled.

The companies all declined to comment.

Enipower, one of Italy’s largest power producers, operates five gas-fired power plants and one cogeneration plant in Italy with an aggregate capacity of over 5 gigawatts.

As concerns over climate change push economies towards a low-carbon future, investing in fossil fuel assets is seen by some as a riskier bet than before.

Eni, which has pledged to be carbon neutral by 2050, is selling the stake to help fund its shift from oil and gas to cleaner businesses.

The group has merged its retail and renewable energy businesses and plans to list part of the unit this year in what could be one of Italy’s biggest IPOs of the year.

($1 = 0.8766 euros)

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Reporting by Stephen Jewkes Editing by Mark Potter

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