Eni S.p.A. shares are trading lower today. The company reportedly plans to sell minority stakes in its biofuel and bio-plastic units by year-end.

The Italian energy group expects the divestiture to garner EUR1.3 billion, reported Reuters. 

As per the report, Eni has started preliminary discussions with funds and industrial investors to find a partner interested in a stake of up to 10% in biofuel unit, Enilive.

Enilive could be valued at EUR10 billion or more, including debt. Eni could also consider listing Enilive through an initial public offering or a spin-off, said the report.

Apart from this, Eni is also in talks with two suitors to sell up to 30% of its bio-plastic business, Novamont, which could valued at around EUR1 billion (including debt).

Read: IEA Forecasts Slowdown In Oil Demand, Contrasts Positive Outlook By OPEC+

As per the report, Eni aims to set up separate entities – called “satellite” companies – that can tap specialized investors to help it fund greener businesses without sapping resources for oil and gas activities.

Also Read: Italian Energy Company Eni Picks SLB For Global Methane Emissions Reporting Project

Investors can gain exposure to the stock via Pacer Developed Markets International Cash Cows 100 ETF and AdvisorShares Dorsey Wright ADR ETF ( AADR ) .

Price Action: Eni shares are down 1.4% at $32.40 premarket on the last check Tuesday.