Macquarie Asset Management has received confirmation that the Italian energy utility Dolomiti Energia Group intends to exercise its preemption right to purchase shares from Macquarie European Infrastructure Fund 4, equating to a 40 percent stake in Hydro Dolomiti Energia (HDE).
The agreement was previously announced in June, and Macquarie said the terms of the transaction implied a valuation of approximately €1 billion ($1.1 billion) for the business.
HDE operates 29 hydropower plants across the Italian province of Trento, representing 1.3 gigawatts of installed capacity. Macquarie has been invested in HDE alongside Dolomiti Energia Group since 2016.
The decision will see Dolomiti Energia Group take 100 percent ownership of HDE upon financial close, which is expected in the second half of 2024.