Investcorp, US buyers make plays for Pal Cooling takeover

More bidders eye Pal Cooling buyout: US-based PE firms KKR and I SquaredCapital, along with the Middle East’s biggest alternative investor Investcorp, are said to be weighing bids for Multiply Group’s district cooling unit Pal Cooling Holding (PCH), Reuters reported on Friday, citing sources it says are familiar with the matter. The sale — announced early last month — could fetch around USD 1 bn, with binding offers expected next month.

Not the only eyes on Pal: The move sees KKR and I Squared Capital join a growing pool ofsuitors for the Abu Dhabi asset — including state utility firm Taqa, state cooling business Tabreed, and Dutch PE firm CVC, which is working with Tabreed, the sources said.

District cooling acquisitions history in UAE: Big district cooling players in the UAE 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.