ADX-listed investment firm Multiply Group is said to be mulling the sale of its district cooling unit, Pal Cooling Holding amid the ongoing construction boom in the Emirates, Bloomberg reports, citing people it says are 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.

Roadshow underway: Despite being in the early stages, the sale has reportedly drummed up interest from both regional and international investors, one person said. Multiply did not confirm or deny the potential sale, saying in an ADX disclosure (pdf) that it “continuously assess[es] strategic options that have the potential to enhance shareholder value, including acquisitions, exits, and other forms of portfolio optimization.”

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, in addition to a healthy pipeline of projects.

By the numbers: The energy and utilities vertical of Multiply Group (which consists of two subsidiaries) made up 17% of its net income split last year, according to its 2024 earnings release (pdf). Multiply Group’s net income came in at AED 1 bn, up 7.1% y-o-y (excluding fair value charges). The firm's revenues rose 56.2% y-o-y to AED 2 bn.

Big players in the domestic 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 Dubai International Airport’s district cooling assets in 2023. It has also recently been on an acquisition spree for more district cooling units across the country. This comes amid an ongoing wave of construction that has hiked demand for district cooling.

IN OTHER M&A NEWS-

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. The move caps a four-year PE investment cycle alongside a consortium of other investors who took the company private for GBP 1.4 bn in 2020. Information about the value of the sale wasn’t disclosed.

Background: Private equity firm EQT and Singapore's sovereign wealth fund GIC were said to be acquiring a majority stake in Calisen in December 2024 from the consortium, valuing the company at around GBP 4 bn at the time.

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