UAE-based district cooling utility company National Central Cooling Company (Tabreed) has announced that ENGIE is making an investment of US$762.3mn to become a 40 per cent shareholder in the company
Headquartered in France, ENGIE is a multinational energy leader and expert operator in the business of electricity, natural gas and energy services. As outlined in an announcement made by Mubadala Investment Company (Mubadala) and ENGIE, Mubadala will convert all of its mandatory convertible bonds into shares, with 1.086bn shares being transferred to ENGIE at a price of approximately US$71 cents per share. The remaining shares will be retained by Mubadala, taking its total shareholding in Tabreed to 1.137bn shares, or approximately 42 per cent.
Jasim Thabet, CEO of Tabreed, said, ?This is a very positive development for Tabreed, which underscores the progress made by Tabreed over the last several years as a leading district cooling company in the region. As Tabreed enters a new phase of growth, we are confident that we will benefit from ENGIE?s global industry-leading experience, especially in the areas of operations and business development which are cornerstones of our expansion strategy across the GCC. This new partnership is a strong endorsement of Tabreed?s financial strength and leading market position.
?We are very well placed to take advantage of growth opportunities in the region and we expect the presence of a global player like ENGIE to further enable us to reach our long-term objectives. We welcome ENGIE to Tabreed and express our continued appreciation to Mubadala for its support as a major shareholder in Tabreed.?
The transaction is expected to complete in Q3 2017 once the required regulatory approvals are granted.
Tabreed is a partner of choice for organisations across the GCC in providing environmentally friendly district cooling solutions. With 71 district cooling plants located throughout the region, Tabreed currently delivers over one million refrigeration tonnes to key developments in the region including iconic infrastructure projects such as Abu Dhabi?s Al Maryah Island, Yas Island, Sheikh Zayed Grand Mosque, Dubai Metro, Dubai Parks and Resorts, and the Jabal Omar Development in the Holy City of Mecca.
