DUBAI, UAE: Dubai Investments has entered a deal to divest a 50% stake in Emirates District Cooling Company (EMICOOL) to Actis – a number one global investor in sustainable infrastructure, at a company valuation of AED 3.7bn (US$1bn) and fairness valuation of AED 2.4 billion (US$ 653mn).
With an extensive community in a number of geographies, the JV is aimed at supporting Emicool in its imaginative and prescient towards becoming one of many main suppliers of sustainable and environment friendly district cooling services inside the broader 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 current on the transaction ceremony were different senior representatives from Dubai Investments, Actis, Emicool and Al Mal Capital.
The deal is counted as one of largest transactions inside the district cooling industry inside the MENA region. The transaction underpins the rising demand for district cooling inside the region, crystalising significant worth for Dubai Investments and testifies the Company’s technique for worth creation through competent partnerships.
Al Mal Capital PSC, a subsidiary of Dubai Investments and a diversified, multi-line funding establishment acted because the sole monetary advisor to Dubai Investments on this transaction.
Actis is a number one global long-term investor in sustainable infrastructure and has raised US$24bn in capital since its inception. Actis’ Long Life Infrastructure team make investments in stabilised working assets inside a number of infrastructure sectors, driving operational value, to ship a strong money yield for investors and measurable ESG impact.
“Our JV deal with Actis is aimed at serving the rising calls for of the district cooling sector by seamlessly integrating the capabilities of each the parties. We are very happy to announce this divestment deal as a half of the Company’s robust plans towards implementing a prudent approach to asset management, facilitating environment friendly recycling of capital to make investments in future growth. Over these years, Dubai Investments focused on re-engineering the price of operations, invested in plant development, enhanced technological know-how and created a strategic asset that has added significant worth to the UAE’s district cooling sector and we’re optimistic it will develop additional with Actis onboard now”, said Khalid Bin Kalban, Vice Chairman and CEO, Dubai Investments.
Commenting on the transaction of the JV, Adrian Mucalov, Actis Partner, said, “We are delighted to have entered this landmark transaction with Dubai Investments, to again one of many main gamers inside the district cooling sector. We look ahead to a long-term partnership and can support Emicool to consistently ship excessive high quality services and buyer care. Actis additionally sees clear alternative for Emicool to become a regional chief in sustainable district cooling and associated services.”
Over the years, Emicool has grown connecting to greater than 2,200 buildings throughout the UAE together with greater than eight diversified sectors like residential, retails, commercial buildings, hotels, schools, universities, hospitals, furnished apartments, industrial and staff lodging throughout UAE.
Emicool 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, RTA Metro Stations (Expo line) & DWTC at Expo 2020, facilitating sustainable developments.