(Bloomberg) -- Tabreed has the “firepower” to do more acquisitions after the Abu Dhabi-based district cooling provider expanded into Dubai with a $675 million deal, according to its chairman.
“We’re focusing on existing projects and we’re looking at acquiring some of the existing schemes,” Khaled Al Qubaisi said in an interview. “We still have enough firepower to do a few more in the coming few years.”
Tabreed, whose biggest shareholder is French utility Engie SA, bought an 80% stake in a Dubai district cooling facility from Emaar Properties PJSC as it seeks to expand in the Middle East’s business hub. The shares of Tabreed and Emaar climbed more than 5% in Dubai on Monday.
With the acquisition, Tabreed will provide district cooling to developments including the Burj Khalifa and Dubai Mall -- the world’s tallest tower and shopping mall, respectively. The company also signed a $692 million credit facility, arranged by HSBC Bank Middle East Ltd., to fund the transaction.
Al Qubaisi also said:
- “We have a healthy pipeline of deal flow, acquisition targets, deal schemes.”
- Impact of coronavirus is “extremely minimal” as the company charges 85% on capacity, which is fixed, and remaining on consumption.
- “There is still a lot of opportunity for upside for district cooling in Saudi Arabia.”
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