Dubai Investments divests 50% stake in Emicool, forms JV with Actis

Dubai Investments, the diversified investment company listed on the Dubai Financial Market, has entered a deal to divest a 50 per cent stake in the Emirates District Cooling Company (Emicool) to Actis, a global investor in sustainable infrastructure, at a corporate valuation of Dhs3.7bn ($1bn) and equity valuation of Dhs2.4bn ($653m), according to a statement released by the company.

The joint venture is aimed at supporting Emicool’s operations in the wider MENA region.

The agreement is said to be one of largest transactions in the district cooling industry in the MENA region. Al Mal Capital, a subsidiary of Dubai Investments and a diversified, multi-line investment institution, acted as the sole financial advisor to Dubai Investments on this transaction.

Khalid Bin Kalban, vice chairman and CEO, Dubai Investments, said: “Our JV deal with Actis is aimed at serving the growing demands of the district cooling sector by seamlessly integrating the capabilities of both the parties. We are very happy to announce this divestment deal as a part of the Company’s robust plans towards implementing a prudent approach to asset management, facilitating efficient recycling of capital to invest in future growth. Over these years, Dubai Investments focused on re-engineering the cost of operations, invested in plant development, enhanced technological know-how and created a strategic asset that has added significant value to the UAE’s district cooling sector and we are optimistic it will grow further with Actis onboard now.”

Adrian Mucalov, Actis partner, said, “We are delighted to have entered this landmark transaction with Dubai Investments, to back one of the leading players in the district cooling sector. We look forward to a long-term partnership and will support Emicool to consistently deliver high quality services and customer care. Actis also sees clear opportunity for Emicool to become a regional leader in sustainable district cooling and related services.”

Emicool offers its services to more than 2,200 buildings across the UAE including more than eight diversified sectors, including residential, retail, commercial buildings, hotels, schools, universities, hospitals, furnished apartments, industrial and staff accommodations across the UAE. It provides district cooling services to DIP, Dubai Motor City, Dubai Sports City, Uptown Mirdif, Palazzo Versace, Damac Hills and Mirdiff Hills, Night Souk by Nakheel and RTA Metro Stations (Expo line).