Dubai Investments, the most diversified investment company listed on the Dubai Financial Market (DFM), has acquired additional 50 per cent stake in Emirates District Cooling (Emicool) from Union Properties for AED500 million ($1=AED3.67).
Following this acquisition, Dubai Investments now owns 100 pc in Emicool. Khalid Bin Kalban, managing director and CEO of Dubai Investments, said that 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.
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. According to a statement from the company, the transaction will have a positive impact on Dubai Investments’ consolidated financials with EBITDA expected to increase by AED110 million. Total assets would go up by AED1.8 billion while liabilities would increase by AED1.2 billion.
Established in 2003 and headquartered in Dubai Investments Park (DIP), Emicool currently provides district cooling services to over 19,000 customers in the UAE. Emicool is planning to increase its plant capacity to 500,000 tonnes of refrigeration (TR) by 2020, with the ramp up in construction leading to increased demand for district cooling services across UAE and the region. Emicool provides district cooling services to DIP, Dubai Motor City, Dubai Sports City, Uptown Mirdif, Palazzo Versace, Damac Hills and Mirdif Hills in Dubai.
The company has recently diversified the business model to build and operate sustainable plants for longer tenor in Northern Emirates and in the Middle East and North Africa (Mena) region. In the UAE, cooling systems account for 60 per cent to 70 per cent of energy consumption in buildings. The company has also put forward strategic plans to transform many buildings from conventional air-conditioning to district cooling.