Built to inform

Sign up for the daily newsletters

No, Thank you

Dubai Investments buys Union Properties’ Emicool stake for $136m

Following the acquisition, Emicool is fully owned by Dubai Investments, and will raise the investment company's assets by $490m

Dubai Investments has purchased Union Properties' stake in Emicool [image: emicool.net].
Dubai Investments has purchased Union Properties' stake in Emicool [image: emicool.net].

Dubai Investments, a listed investment company, announced the acquisition of a 50% stake in Emirates District Cooling (Emicool). 

The share was purchased for $136.1m (AED500m) from Union Properties, which revealed its intention to sell its stake in the district cooling company earlier this month. 

READ: UAE's Union Properties in final stages of Emicool stake sale

Following the acquisition, Emicool is fully owned by Dubai Investments. 

Commenting on the development, Khalid Bin Kalban, managing director and chief executive officer 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." 

Following the acquisition, Dubai Investments' earnings before interest, taxes, depreciation, and amortisation (EBITDA) will rise by $30m (AED110m), and assets will increase by $490m (AED1.8bn). 

Kalban said Dubai Investments' liabilities would increase by $326.7m (AED1.2bn). 

Emicool provides district cooling services to neighbourhoods such as Dubai Motor City, Uptown Mirdif, and Damac Hills, and expects to increase its plant capacity to 500,000 refrigeration tonnes (TR) by 2020.

 

Most popular

Awards

Go for gold at the 15th Construction Week Awards in December 2019!
Winners will be crowned under 14 categories at a gala ceremony in Dubai – are

Conferences

Leaders in Construction UAE Summit returns in Sept 2019
Dubai conference to see top officials discuss the people, trends, and challenges that will power
Leaders Kuwait 2018: New Kuwait 2035 needs smart city-led contracts
Localisation and contract modernisation are essential for Kuwait's diversification strategy

Latest Issue

Construction Week - Issue 741
May 11, 2019