Dewa buys up more of Empower: Dubai Electricity and Water Authority (Dewa) upped its stake in Emirates Cooling Systems Corporation (Empower) to 80%, up from 56%, after buying out Emirates Power Investment — a Dubai Holding subsidiary — for AED 5.2 bn, according to a press release (pdf).

The fine print: The transaction was executed at AED 2.16 per share, with Dewa acquiring 2.4 bn shares — good for a 24% additional stake in the DFM-listed district cooling firm. The consideration represents a 17% premium to the firm’s last closing price of AED 1.79 per share, according to our calculations.

Our take

By folding the world’s largest district cooling provider almost entirely into its balance sheet, Dewa is centralizing the emirate’s utility yield under one roof. For Dewa shareholders, the move likely signals a play to stack dividend capacity — Empower has a standing policy to pay out at least AED 875 mn annually. By owning 80%, Dewa now captures the lion’s share of those dividends.

We’re seeing a shift in how Dubai’s state-linked giants manage their portfolios. While Dewa is doubling down on mature infrastructure yield, the seller, Dubai Holding, is aggressively recycling capital into growth sectors — think real estate, hospitality, and retail. In the last month alone, Dubai Holding expanded its European luxury hospitality footprint with Jumeirah Mallorca and doubled down on a massive AED 38 bn residential JV with Aldar.

MARKET REAX- Empower’s stock gained 6.1% on the news to close at AED 1.9 apiece on Tuesday before sliding to AED 1.82 yesterday.

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