Press Release, Albawaba Business
Dubai Investments owns 100% stake in Emicool.
Dubai Investments PJSC [DFM: DIC], the leading, diversified investment company listed on the Dubai Financial Market, has acquired additional 50% stake in Emirates District Cooling LLC [Emicool], a member of IDEA, from Union Properties PJSC for AED 500 million. Following this acquisition, Dubai Investments owns 100% stake in Emicool.
Khalid Bin Kalban, Managing Director and CEO of Dubai Investments, said: “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. The transaction will have a positive impact on Dubai Investments’ consolidated financials with EBITDA expected to increase by AED 110 million. Total assets would go up by AED 1.8 billion while liabilities would increase by AED 1.2 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 & recently the Company has diversified the business model to build and operate sustainable plants for longer tenor in Northern Emirates and in the MENA region. In the UAE, cooling systems account for 60% to 70% of energy consumption in buildings. The Company has also put forward strategic plans to transform many buildings from conventional air-conditioning to district cooling.