June 25 Reuters Australia39;s Macquarie Group said on Tuesday its European infrastructure fund will sell its 40 stake in Italian energy firm Hydro Dolomiti Energia HDE to a consortium in a deal valuing HDE at about 1 billion euros 1.07 billion.

The consortium is led by global investor Equitix39;s Euro Funds and includes energy infrastructure investor and solar park operator Tages Capital as well as Italian private equity firm La Finanziaria Trentina, among others.

HDE owns 29 hydroelectric power plants in northern Italy with an installed capacity of 1.3 gigawatts GW.

Italy is a core market for Equitix where we have been investing in infrastructure and renewable energy for more than a decade, Hugh Crossley, CEO of Equitix Investment Management, said.

Hydroelectric plants are an important source of renewable energy in Italy, which is also developing solar and wind power to decarbonise its economy.

Macquarie bought the stake in HDE in 2016 from Enel, Italy39;s biggest utility, in a transaction worth around 300 million euros.

Macquarie said the deal is subject to certain conditions, including a lastlook preemption right that may be exercised by Dolomiti Energia Group, which owns the rest of HDE.

Equita and Rothschild advised Macquarie on the transaction, which is expected to be completed by the end of the year.

1 0.9321 euros

Reporting by Sneha Kumar in Bengaluru and Francesca Landini in Milan; Editing by Rashmi Aich and Savio D39;Souza

Source Reuters