Dubai Investments has announced the acquisition of a 50 per cent stake in Emirates District Cooling (Emicool) for Dhs500m ($136.1m) from Union Properties.
Union announced it was in the final stages of the sale a week and a half ago. The stake was valued at Dhs355m ($97m) in its 2016 annual report.
The deal makes Dubai Investments the 100 per cent owner of Emicool having jointly established the company with Union in 2003 in Dubai Investment Park.
It currently provides air conditioning services to 19,000 UAE customers and is planning to increase its plant capacity to 500,000 tonnes of total refrigeration by 2020.
“The transaction strengthens Dubai Investments’ portfolio in the utility service domain, growing its asset base, and is expected to boost future profitability and deliver value to shareholders,” said Dubai Investments managing director and CEO Khalid bin Kalban.
“Emicool has carved a niche in the district cooling sector, and Dubai Investments’ acquisition will spur its growth and expansion plans amidst surging demand in the region.”
He added that the transaction would have a positive impact on Dubai Investments’ consolidated financials.
EBITDA is expected to increase by Dhs110m ($29.9m), total assets to Dhs1.8bn ($490m) and liabilities to Dhs1.2bn ($326.7m), according to the official.