Global investment firm KKR (KKR) has agreed to increase its stake in Enilive, the biofuel subsidiary of Italian energy giant Eni (E). Under this move, KKR will acquire an additional 5% stake in Enilive, valued at €587.5 million, bringing its total ownership to 30%. The increased investment reflects KKR’s confidence in Enilive’s growth potential.
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The deal follows KKR’s initial agreement, signed in October 2024, to acquire a 25% stake in Enilive. The initial transaction is expected to close by the end of March. Investors should note that the additional investment maintains the same valuation as the initial agreement, valuing Enilive at €11.75 billion.
By investing in Enilive, KKR aims to bolster its position in the sustainable mobility sector. Enilive provides integrated services and decarbonized products, aligning with global trends toward cleaner energy solutions.
KKR Looks to Diversify Portfolio Across Sectors
Apart from the Enilive deal, KKR is making efforts to diversify its portfolio with strategic investments across sectors. This approach is expected to help reduce risk and position KKR well for long-term stability and profit growth.
Following a months-long bidding war with Bain Capital (BCSF), KKR recently was successful in acquiring Fuji Soft (JP:9749), a Japanese IT company. This win reflects KKR’s strategic focus on expanding its presence in Japan’s competitive buyout market. Moreover, KKR has agreed to acquire a stake in HR management services provider, Employment Hero. This deal aligns with KKR’s focus on small and medium-sized businesses software market in Australia.
Meanwhile, KKR made a $2 billion offer to acquire UK-based healthcare REIT, Assura, but the offer has been rejected. This marked KKR’s fourth offer in the past six months, and the company is now mulling its next steps.
Is KKR a Good Stock to Buy?
Turning to Wall Street, KKR stock has a Strong Buy consensus rating based on 12 Buys and three Holds assigned in the last three months. At $174.43, the average KKR price target implies a 24.1% upside potential. Shares of the company have gained 17.3% over the past six months.
