Multiply Group has agreed to sell 100% of its stake in PAL Cooling Holding to Abu Dhabi-listed Tabreed and private equity firm CVC Capital Partners, in a deal that values the district cooling firm at AED 3.8 billion (USD 1 billion). The transaction, which includes key long-term concessions in Abu Dhabi and Al Reem Island, is pending regulatory approvals.
The acquisition gives Tabreed, a state-backed utility, and CVC DIF, the infrastructure investment platform of CVC, complete control of PAL’s district cooling operations, comprising five active plants with a current capacity of 182,000 refrigeration tons (RT) and future expansions planned to reach 600,000 RT.
The move is seen as a continuation of global private equity’s pivot toward infrastructure assets in the GCC, amid rising demand for efficient and sustainable cooling solutions in a region reliant on year-round air conditioning.
“This acquisition strengthens our investment-grade profile with long-term concession stability and strong development potential on Reem Island,” said Khalid Al Marzooqi, CEO of Tabreed.
For Multiply Group, which acquired PAL in July 2021, the sale represents a strategic monetization.
“This transaction reflects our ability to unlock value and boost liquidity to power Multiply’s next phase of growth — both locally and globally,” said Samia Bouazza, CEO of Multiply Group.
Shares of Multiply Group rose 2.6% on the ADX following the announcement, while Tabreed’s shares gained 1.8%, signaling positive investor sentiment.
Advisors on the deal include Standard Chartered and Clifford Chance for Multiply Group, and Citi, Synergy Consulting, and White & Case for the buyers.
The deal adds to a string of recent infrastructure-focused investments in the UAE, highlighting the region’s growing appeal to long-term institutional capital and global funds alike.
–Input WAM
