Dubai Holding has completed the sale of its 24% stake in Empower, the world’s largest district cooling provider, to Dubai Electricity and Water Authority (DEWA), according to a joint statement released today.
The transaction, executed through Dubai Holding’s subsidiary Emirates Power Investment (EPI), increases DEWA’s ownership in Empower to 80%, consolidating the district cooling platform under the authority’s umbrella. The deal, valued at AED 5.184 billion (approximately $1.41 billion USD), aims to enhance governance and integration among Dubai’s publicly listed utility entities.
“We are pleased to announce a strategic transaction between Dubai Holding and DEWA, whereby DEWA’s stake in Empower has increased from 56% to 80% (an increase of 24% over the current stake),” said Saeed Mohammed Al Tayer, Managing Director and CEO of DEWA. “This reinforces our commitment to delivering added value to our shareholders through deepening our investments in a company like Empower, the world’s largest district cooling provider listed on the Dubai Financial Market.”
Empower is listed on the Dubai Financial Market with a market capitalization of approximately AED 17.9 billion. Its scale, long-standing relationships with customers, and flexible operating model have established district cooling as a key pillar of Dubai’s sustainable infrastructure, according to the statement.
The sale aligns with Dubai Holding’s strategic asset allocation program and focus on prudent portfolio management, according to Amit Kaushal, CEO of Dubai Holding. “This transaction demonstrates disciplined portfolio management and capital reallocation within Dubai Holding’s strategic asset allocation program, consistent with a focus on sound management, strategic opportunities, and global partnerships that enhance resilience and long-term value creation,” Kaushal stated. “For over two decades, since 2005, Dubai Holding has supported Empower as a partner and shareholder, as it has grown to become the world’s largest district cooling provider with a leading market position in Dubai, nurturing its key projects, including Empower’s successful listing on the Dubai Financial Market in November 2022. We are proud to have supported Empower throughout this journey through active ownership, and partnership. As we progress with our growth and diversification strategy, we remain committed to initiatives and partnerships that support sustainable value creation and enhance Dubai’s economic vision, in line with the directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, Ruler of Dubai.”
Al Tayer added that the deal is in line with the vision of Dubai’s leadership, including Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, and Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai, to strengthen partnerships and commitment to innovation in the sector.
