Dubai investments to divest 50% stake in EMICOOL

In one of the biggest deals in the district cooling industry in the MENA region, Dubai Investments, the leading diversified investment company listed on the Dubai Financial Market (DFM), has entered a deal to divest a 50% stake in Emirates District Cooling Company (EMICOOL) to Actis – a leading global investor in sustainable infrastructure, at a corporate valuation of $1 billion and equity valuation of $653 million.

With an extensive network in multiple geographies, the JV is aimed at supporting EMICOOL in its vision towards becoming one of the leading providers of sustainable and efficient district cooling services in the wider MENA region.

The transaction ceremony was attended by Khalid Bin Kalban, Vice Chairman and CEO, Dubai Investments, Abdulaziz Bin Yagub Al Serkal, Chairman, Emicool and Adrian Mucalov, Actis Partner. Also present at the transaction ceremony were other senior representatives from Dubai Investments, Actis, Emicool and Al Mal Capital.

The deal is counted as one of largest transactions in the district cooling industry in the MENA region. The transaction underpins the growing demand for district cooling in the region, crystalising significant value for Dubai Investments and testifies the Company’s strategy for value creation through competent partnerships.

Al Mal Capital PSC, a subsidiary of Dubai Investments and a diversified, multi-line investment institution acted as the sole financial advisor to Dubai Investments on this transaction.

Actis is a leading global long-term investor in sustainable infrastructure and has raised $24 billion in capital since its inception. Actis’ Long Life Infrastructure team invest in stabilized operating assets within multiple infrastructure sectors, driving operational value, to deliver a strong cash yield for investors and measurable ESG impact.

JV Part of Robus Plans

Khalid Bin Kalban said: “The deal with Actis is aimed at serving the growing demands of the district cooling sector by seamlessly integrating the capabilities of both the parties. This JV is 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,” he added.

Actis Partner Adrian Mucalov said: “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 become a regional leader in sustainable district cooling and related services.”

Over the years, EMICOOL has grown connecting to more than 2,200 buildings across the UAE including more than eight diversified sectors like residential, retails, commercial buildings, hotels, schools, universities, hospitals, furnished apartments, industrial and staff accommodations across UAE.