Engie-supported National Central Cooling company, known as Tabreed, is in exclusive negotiations to acquire the district cooling division of Multiply Group, based in Abu Dhabi. This transaction is projected to value the business at over $1 billion, according to two sources who spoke with Reuters.
### Bidding Details
Tabreed, alongside private equity firm CVC, emerged as the leading contender for PAL Cooling Holding (PCH). According to sources familiar with the situation, discussions with the seller are currently underway. One insider indicated that the bid was approaching $1.1 billion.
### Investment Trends
The interest in PCH signifies a growing trend among international investment firms to target opportunities in the Gulf region, as local governments aim to diversify their economies beyond oil dependence.
### Company Statements
Tabreed has stated that it does not provide comments on market speculation and assured that any significant transactions would be announced as they are finalized. Meanwhile, CVC opted not to make any comments, and Multiply Group did not respond promptly to requests for a statement.
### Previous Interest
Earlier in April, Reuters reported that CVC was collaborating with Tabreed to formulate a joint bid for PCH.
### About District Cooling
District cooling systems, which supply chilled water through insulated pipes for cooling purposes in offices, industrial sites, and residential buildings, are recognized as a cost-effective and environmentally friendly alternative to traditional air conditioning. These systems are widely used in the UAE and other areas of the Arabian Peninsula, where summer temperatures can exceed 50 degrees Celsius (122 degrees Fahrenheit).
### Company Overview
Established in 2006, PCH operates multiple cooling plants in Abu Dhabi, boasting a total design capacity of 242,000 refrigeration tonnes, according to its official website.
### Competitive Landscape
Back in April, it was reported that the sale attracted interest from other bidders, including KKR, I Squared Capital, Investcorp, and TAQA, with an estimated sale price of around $1 billion.
### Ownership
Multiply Group is under the control of IHC, led by Sheikh Tahnoon bin Zayed Al Nahyan, the UAE’s national security adviser and a brother to the nation’s president, who leads a vast business portfolio that includes two sovereign wealth funds.