Dubai Investments takes full ownership of Emicool
Dubai Investments, a Dubai-listed investment holding conglomerate, has taken full ownership of Emirates District Cooling (Emicool) after acquiring an additional 50% stake in the firm from Union Properties for Dh500 million
Dubai Investments, a Dubai-listed investment holding conglomerate, has taken full ownership of Emirates District Cooling (Emicool) after acquiring an additional 50% stake in the firm from Union Properties for Dh500 million.
"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," Khalid Bin Kalban, managing director and chief executive officer of Dubai Investments said in a statement to Dubai Financial market (DFM), where its shares are traded.
"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."
As a result of the acquisition, Dubai Investments' earnings before interest, taxes, depreciation and amortization (Ebidta) is expected to rise by Dh110m. Its total assets would increase by Dh1.8 billion and the liabilities would grow by Dh1.2bn, the company said in the bourse filing.
Emicool, the Dubai Investment Park-based firm was established in 2003 as a joint venture with Union Properties, provides district cooling services to over 19,000 customers in the UAE. The company is planning to increase its capacity to 500,000 tons of refrigeration by 2020 due as demand for district cooling in the UAE and the region continue to grow.
Union Properties said in a separate statement that it had received several offers to buy its stake in Emicool, from both local and international companies, after it decided to shift its strategy and put its stake in the district cooling company on the block.
Upon notifying Dubai Investments of its plan to sell its stake, the conglomerate exercised its right as a partner in the business to buy the stake it doesn't already own, Union Properties said. The final legal steps of the deal to give Dubai Investments full ownership of Emicool were concluded on January 18, it said.