Macquarie Asset Management has reached an agreement to sell Macquarie European Infrastructure Fund 4’s 40 per cent stake in Hydro Dolomiti Energia (HDE) to a consortium comprised of Equitix Euro Funds, Tages Capital SGR S.p.A., and La Finanziaria Trentina S.p.A. together with local industrial co-investors and institutions (the Consortium). The terms of the transaction imply a valuation of approximately €1 billion for the business.
HDE operates 29 hydropower plants across the Italian province of Trento, representing 1.3 GW of installed capacity. HDE’s hydropower plants produce electricity to power the equivalent of approximately one million homes annually.
Stéphane Brimont, a Managing Director at Macquarie Asset Management, said: “Hydropower is a strategic asset, playing a key role in the energy transition and providing a clean and system-critical source of power as the installation of new solar and wind accelerates across Italy. Under our stewardship with the Dolomiti Energia Group, HDE has continuously provided a secure and reliable source of electricity while developing a highly-skilled technical and commercial operations team, and contributing to the economy of the province. We wish the business every success as it embarks on its next chapter.”
Macquarie European Infrastructure Fund 4 first invested in HDE in 2016. In partnership with Dolomiti Energia Group, Macquarie Asset Management has supported HDE in further strengthening the asset condition, developing local jobs and expertise, and preparing its long term strategic ambitions.
Macquarie is a long-term investor in Italian Infrastructure. In addition to HDE, Macquarie-managed funds are supporting the development of Italy’s national motorway system via Autostrade per l’Italia, and is accelerating investment in high quality digital infrastructure through Open Fiber.
Hugh Crossley, CEO of Equitix Investment Management Limited, said: “Equitix is very proud to be investing in HDE, which is critical to Italy’s energy security and a major energy transition asset. Italy is a core market for Equitix where we have been investing in infrastructure and renewable energy for more than a decade. We also look forward to continuing our collaboration with our friends and fellow shareholders at Dolomiti Energia Group, where we have been a shareholder since 2021.”
The transaction with the Consortium is subject to the satisfaction of certain conditions, including a last-look pre-emption right which may be exercised by Dolomiti Energia Group. It is expected that the transaction will reach financial close by Q4 2024.
