Tabreed, the Abu Dhabi-based district cooling company backed by Engie, and global private equity giant CVC Capital Partners have entered exclusive negotiations to acquire PAL Cooling Holding (PCH) from Multiply Group, in a transaction expected to exceed $1.1bn, according to Reuters.

The deal highlights strong international investor appetite for Gulf infrastructure assets, particularly as the region accelerates its diversification away from hydrocarbons. Tabreed’s shares rose 4.3% to AED2.68 following news of the exclusive talks.

Founded in 2006, PAL Cooling operates several district cooling plants in Abu Dhabi with a combined design capacity of 242,000 refrigeration tonnes. The company provides sustainable cooling solutions for commercial, industrial, and residential clients—an increasingly vital service in the Gulf’s extreme climate.

The sale process, launched earlier this year, attracted significant interest from global infrastructure and private equity firms including KKR, I Squared Capital, Investcorp, and TAQA. Multiply Group, the seller, is a diversified investment arm of International Holding Company, chaired by Sheikh Tahnoon bin Zayed Al Nahyan, the UAE’s national security adviser.

If finalised, the acquisition would mark a major step for Tabreed and CVC in expanding their regional footprint and underscores the growing importance of district cooling as a key infrastructure asset class in the Gulf.

Source: Reuters

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