Abu Dhabi-based and ADX-listed investment firm Multiply Group is said to be mulling the sale of its district cooling unit Pal Cooling Holding, Bloomberg reported on Monday, citing sources familiar with the matter. The firm has enlisted Standard Chartered to advise on the potential transaction which could see it rake in some USD 1 bn in proceeds, the people said.

About Pal Cooling Holding: Founded in 2006, the Abu Dhabi-based firm owns and operates a portfolio of central cooling plants that supply chilled water for air conditioning at various stages of development, according to its website. Pal has long-term contracts to supply over 600k tons of refrigeration (TR) of cooling. The company is currently constructing a cooling plant in Najmat with 49k RT installed capacity.

District cooling acquisitions history in UAE: Big players in the UAE market have been expanding their market share through acquisitions. Mubadala-backed Tabreed acquired an 80% stake in Emaar Properties’ district cooling unit in 2020, and DFM-listed Dubai-based Empower snapped up the Dubai International Airport’s district cooling assets in 2023 and has recently been on an acquisition spree for more district cooling units across the country.

IN OTHER M&A UPDATES-

Mubadala offloaded its indirect stake in Calisen — a UK-based provider of smart meters and small-scale energy transition infrastructure, according to a press release published on Monday. The move caps a four-year PE investment cycle alongside a consortium of other investors who took the company private for GBP 1.43 bn in 2020. It’s noteworthy that Private equity firm EQT and Singapore’s sovereign wealth fund GIC purchased a majority stake in Calisen in December 2024 from the consortium, valuing the company at around GBP 4 bn at the time. Information about the value of the exit gain wasn’t disclosed.

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