Investment company Dubai Holding has sold its 24 per cent stake in Emirates Central Cooling Systems Corporation (Empower) to Dubai Electricity and Water Authority in a Dh5.18 billion ($1.41 billion) deal.
The agreement lifts Dewa’s stake in Empower to 80 per cent, allowing “strategic consolidation of Dubai’s district cooling platform”, the two companies said in a statement on Tuesday.
“This milestone is a testament to our dedication to creating value for our stakeholders by deepening our investment in a company like Empower,” said Saeed Al Tayer, managing director and chief executive of Dewa.
“We are confident that this transaction will bring mutual benefits to both companies.”
Empower, which is listed on the Dubai Financial Market with a market capitalisation of Dh17.9 billion, is one of the world's largest providers of district cooling services.
The company, which has been expanding its portfolio of assets across the emirate, acquired the rights to operate five district cooling units at Dubai International Airport in 2023, in a deal valued at Dh1.1 billion.
Dubai International Financial Centre, Dubai World Trade Centre, Dubai Healthcare City, Meydan City, Dubai Studio City, Dubai Maritime City, Dubai Land, Palm Jumeirah, JBR, Bluewaters Island and Business Bay are also in the company's portfolio.
Empower’s scale, long-term contracts and resilient operating model have “helped establish district cooling as a cornerstone of Dubai’s sustainable infrastructure”, the companies said.
“This transaction demonstrates Dubai Holding’s disciplined approach to portfolio management, enabling the strategic reallocation of capital as we advance a globally diversified investment strategy, focused on long-term resilience, growth and value creation,” said Amit Kaushal, group chief executive of Dubai Holding.
Dubai Holding, he said, has supported the growth of Empower since 2005, helping it gain a market‑leading position in Dubai and with its successful listing on the DFM in November 2022.
