MILAN, May 15 (Reuters) - Italy's Eni has

entered exclusive talks with investment fund Ares Alternative

Credit Management over the sale of a 20% stake in its renewable

and retail arm Plenitude, the energy group said on Thursday.

Negotiations are based on an equity value of Plenitude

between 9.8 and 10.2 billion euros, corresponding to a value of

more than 12 billion euros ($13.4 billion), including debt, Eni

said in a statement.

The deal is part of Eni's so-called

'satellite' strategy

, which aims to develop specialised units dedicated to

low-carbon businesses or upstream projects that can attract

investments from financial partners.

"The agreement follows a thorough selection process

involving several prominent international players who expressed

strong interest in the company, further confirming the great

appeal of its business model and its growth prospects," the

Italian group said.

Mediobanca is acting as financial adviser for

Eni, while UniCredit and Deutsche Bank are advising Ares

Alternative Credit Management on the deal.

Under the satellite strategy, Eni has already opened up

the capital of Plenitude to

Switzerland's Energy Infrastructure

Partners (EIP) in two transactions that brought the asset

manager to get a 10% stake in the unit.

EIP valued Plenitude at over 10 billion euros, including

debt, in the last deal completed in March.

Earlier this year U.S.

investment fund KKR

acquired a total 30% of the energy group's biofuel

unit Enilive with overall proceeds for Eni of 3.6 billion euros.

($1 = 0.8939 euros)