UAE-based leading investment company, Dubai Investments has sold a 50 percent stake in Emirates District Cooling (Emicool) to investment firm Actis at a corporate valuation of $1 billion and equity valuation of $653 million.
The company stated that the deal is one of the largest transactions in the district cooling industry in the Middle East and North Africa (MENA) region.
The new ownership structure will support the utility, which provides sustainable district cooling services, to expand its operations across the MENA region.
According to the statement, the transaction underpins the growing demand for district cooling in the region, crystalizing significant value for Dubai Investments and testifying to the company’s strategy for value creation through competent partnerships.
“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.”
Mr. Adrian Mucalov, Actis Partner noted that, “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 a clear opportunity for Emicool to become a regional leader in sustainable district cooling and related services.”
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, as per the statement.