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Dubai Electricity and Water Authority has acquired Dubai Holding's full 24% stake in Emirates Central Cooling Systems for AED 5.18 billion, or USD 1.41 billion, raising its ownership to 80%. The deal was completed at a premium to Empower's market price and consolidates control of Dubai's district cooling infrastructure under DEWA. The move comes amid rising demand for energy-efficient cooling driven by real estate growth. Dubai Holding exited the investment as part of a broader strategy to diversify its global portfolio.
Dubai Electricity and Water Authority has increased its ownership in Emirates Central Cooling Systems, known as Empower, after acquiring Dubai Holding's entire 24% stake for AED 5.18 billion, equivalent to USD 1.41 billion. The transaction takes DEWA's total shareholding in the district cooling company to 80%, strengthening its control over a key urban infrastructure asset in Dubai. Advertisement
The acquisition was announced following a board-level decision and values Empower at an implied price of AED 2.16 per share. This represents a premium of about 14% over the company's last traded price, indicating DEWA's readiness to pay higher valuations to consolidate its position. With this deal, Empower effectively becomes a majority-controlled subsidiary of the state-owned utility.
The transaction brings Dubai's district cooling platform further under DEWA's umbrella at a time when large-scale real estate development across the emirate continues to expand. New residential communities, commercial districts, and mixed-use projects have increased demand for efficient and scalable cooling solutions, making district cooling an important part of Dubai's energy planning.
DEWA's managing director and chief executive Saeed Mohammed Al Tayer said the acquisition reflects the utility's focus on long-term value creation through deeper investment in Empower. He indicated that the move aligns with DEWA's broader strategy of supporting sustainable infrastructure while strengthening returns for stakeholders.
District cooling systems rely on centralised plants that distribute chilled water through underground networks. These systems are widely considered more energy-efficient than conventional air-conditioning, particularly in dense urban environments, and help reduce peak electricity demand. Dubai has been one of the region's largest adopters of this model due to its climate and urban density.
Dubai Holding exited the investment through Emirates Power Investment LLC, a wholly owned subsidiary. The group stated that the divestment is consistent with its shift towards a more globally diversified investment approach, allowing it to redeploy capital into other markets and asset classes.
Empower was listed on the Dubai Financial Market in late 2022, where its initial public offering attracted strong investor interest and was oversubscribed multiple times. The company currently accounts for more than 80% of Dubai's connected district cooling capacity and serves several prominent developments across residential, commercial, and mixed-use segments.
Following the transaction, the remaining 20% of Empower's shares continue to be publicly traded on the Dubai Financial Market, maintaining its status as a listed company with public shareholders alongside DEWA's controlling stake.
Source Reuters
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