All Descalzi’s plans for Eni Gas and Light
What will happen to Eni Gas e Luce. Facts, numbers and analysts' opinions
Initial public offering, sale or exchange of a minority stake. These are the three options that the Eni group is working on for Eni Gas e Luce, the spin-off company of the Cane a Sei Leggampe which will be born from the union of retail and renewable energy activities. All the details.
WHAT ENI DOES
Eni's board of directors, which met yesterday under the chairmanship of Lucia Calvosa, "approved the launch of a strategic project in order to define and evaluate the industrial and financial plan of the new corporate vehicle that will arise from the union of the retail activities and renewable energy ”, explains a note from the group headed by the CEO, Claudio Descalzi.
THE HYPOTHESIS OF IPO
In particular, with the aim of enhancing the company, Eni is evaluating "multiple options" to be implemented "during 2022, subject to market conditions". There are three possibilities: listing on the stock exchange through an initial public offering (IPO), or the sale or exchange of a minority stake.
At work "an Eni team, supported by strategic and financial advisors", explains the company.
THE MERGER OF RETAIL AND RENEWABLE ACTIVITIES
Last February, the six-legged dog announced the merger between Eni Gas and Luce, the group's retail activities, which have around 10 million customers, and the renewable energy business, whose development plan provides for a significant increase. of installed capacity. Eni aims to develop electricity generation capacity from renewable sources exceeding 5 GW by 2025.
THE (ECONOMIC) OBJECTIVES OF NEWCO
The new division, which by 2025 according to forecasts will have a customer base of 11 million, is expected to reach an overall EBITDA expected to grow, from 600 million euros in 2021 to over 1 billion euros in 2025.
THE JUDGMENTS OF THE ANALYSTS
The spin-off of the activities is positively judged by analysts: "We believe that a potential spin-off of these activities can support the raising of funds for other investments and can lead to greater visibility on the retail / renewable valuation", said Intesa Sanpaolo. reports MF-Milano Finanza . A division listing enhances this segment, analysts from Bestinver Securities and Mediobanca argue, underlining that the sector has much higher multiples than those of the upstream business.
The listing could “emphasize the company's energy transition”, argue from Banca Akros.
Equita Sim also blessed the moves on Eni Gas and Light: "We think that the market would not recognize a multiple from" renewables "to those projects within Eni or in an oil company in general if there were not a catalyst destined to achieve that value ", stressed Equita, stating that the enhancement of the retail business can reach 7-9 times the ev / ebitda, while renewable energies could reach multiples in a" low to mid teens "range, 11-16 times ev / ebitda.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/energia/tutti-i-piani-di-descalzi-su-eni-gas-e-luce/ on Fri, 30 Apr 2021 12:40:45 +0000.