By: Reuters

Dubai Electricity and Water Authority said it has acquired Dubai Holding's entire 24% stake in Emirates Central Cooling Systems (EMPOWER.DU), opens new tab for 5.18 billion dirhams ($1.41 billion), lifting its holding to 80%.

The deal, announced late on Tuesday, was struck at an implied price of 2.16 dirhams per share, a 14% premium to Empower’s last close, underscoring DEWA’s willingness to pay up to gain control of the district cooling provider.

In a winter colder than any Ukraine has faced for years, 66‑year‑old plumber Volodymyr Vasyliev descends into the basements of Kyiv’s battered Soviet-era apartment blocks.

The transaction consolidates Dubai’s district cooling platform under state utility DEWA at a time when the emirate’s rapid real estate expansion is driving rising demand for energy-efficient cooling infrastructure.

“This milestone is a testament to our dedication to creating value for our stakeholders by deepening our investment in a company like Empower,” DEWA Managing Director Saeed Mohammed Al Tayer said in a statement.

District cooling systems, which use centralised plants to distribute chilled water through pipe networks, are in demand as they consume significantly less electricity than conventional air conditioning.

Dubai Holding sold the stake through Emirates Power Investment LLC, a wholly owned subsidiary, and said in a statement the exit was part of a shift toward a “globally diversified investment strategy".

Empower, which listed on the Dubai Financial Market in November 2022 in an offering that was 47 times oversubscribed, commands more than 80% of Dubai’s connected district cooling capacity and serves major commercial, residential and mixed-use developments across the emirate.
The remaining 20% of its shares continue to trade on Dubai's stock exchange.