Abu Dhabi’s National Central Cooling Company PJSC, also known as Tabreed, backed by Engie, and global private equity firm CVC Capital Partners have entered exclusive negotiations to acquire PAL Cooling Holding (PCH), the district cooling subsidiary of Multiply Group, in a transaction expected to exceed $1bn, according to a report by Reuters citing sources familiar with the matter.
Tabreed and CVC emerged as the lead bidders for PCH, with the bid reportedly nearing $1.1bn. The deal underscores growing international investor interest in the Gulf’s infrastructure sector, particularly as regional governments continue to diversify away from hydrocarbons.
Shares in Tabreed climbed 4.3% to AED2.68 on news of the exclusive talks.
Founded in 2006, PAL Cooling operates several district cooling plants in Abu Dhabi, boasting a combined design capacity of 242,000 refrigeration tonnes. The company provides sustainable cooling solutions to commercial, industrial, and residential assets – an increasingly attractive proposition in the heat-intense Gulf climate.
The sale process, initiated earlier this year, attracted interest from major global infrastructure and private equity players, including KKR, I Squared Capital, Investcorp, and TAQA. Multiply Group, the seller, is a diversified investment arm of International Holding Company, chaired by Sheikh Tahnoon bin Zayed Al Nahyan, UAE’s national security adviser and brother to the country’s president.
