Source: Gulfs News
Dubai: It’s an exciting and interesting time for the UAE cooling sector. Tabreed, a prominent district cooling company, has partnered with CVC DIF, a global investment firm, to acquire PAL Cooling Holding for an impressive AED 3.8 billion. PAL Cooling Holding’s shares were sold by Multiply Group, which is based in Abu Dhabi.
Tabreed is already a well recognized name in the cooling sector. It provides cooling services to world-famous sites such as Burj Khalifa, Sheikh Zayed Grand Mosque, Louvre Abu Dhabi, and Yas Island. It also has projects in Bahrain, and Mecca. This acquisition will allow Tabreed to expand at speed, especially in Abu Dhabi.
What Does PAL Cooling Own?
Established in 2006, PAL Cooling has eight long-term contracts for cooling service for significant developments in Abu Dhabi; “PAL is strongly positioned on Al Reem Island, which is a strategic destination now fully part of the ADGM free zone,” said the statement.
PAL currently operates five cooling plants with a collective cooling capacity of 182,000 refrigeration tons (RT). One additional cooling plant is being constructed, and three other plants are planned. “Together the nine plants and eight concessions are expected to represent approximately 600,000 RT,” said a statement.
PAL is collaborating with several prominent real estate companies, including Aldar Properties, Modon, and Imkan. Its cooling network on Al Reem Island is expected to expand as the firm has already acquired the requisite license, from the Department of Energy in Abu Dhabi.
Why This Deal Matters
“This year has been historic for Tabreed, with ventures like our Palm Jebel Ali JV and continued growth in Abu Dhabi,” said Dr. Bakheet Al Katheeri, Chairman of Tabreed. “These steps position us to meet the UAE’s rising demand for sustainable cooling, driven by population growth and de-carbonisation targets.”
Cooling solutions like these are essential for energy efficiency in the UAE, where we often experience temperatures above 50°C. District cooling could consume up to 50 % less energy than conventional air conditioning.
Market Response
Tabreed’s share price is Dh2.79 on the Dubai Financial Market (DFM). As its 52-week high is Dh3.2 the share price has come down a little. However, they have been producing strong results and are performing very well.
Multiply Group, which sold PAL Cooling has been completely transforming its business and its stock has also improved 13.5% this year, now trading at Dh2.35.
In Summary
Who’s buying: Tabreed and CVC DIF
Who’s selling: Multiply Group
Deal value: Dh3.8 billion
Why it matters:
Supports UAE’s requirements for sustainable cooling and energy savings
This agreement will help Tabreed consolidate its position as a market leader in sustainable cooling throughout the region.
