Dubai Electricity and Water Authority (DEWA) has agreed to buy Dubai Holding’s 24% stake in Emirates Central Cooling Systems (Empower) for 5.18 billion dirhams ($1.41 billion), the companies said late on Tuesday.
The deal, which values Empower at 2.16 dirhams per share, represents a 14% premium to its last market close and raises DEWA’s ownership to 80%.
The transaction brings Dubai’s largest district cooling operator firmly under the control of the state-owned utility.
Empower operates more than 80% of Dubai’s connected district cooling capacity, serving major residential, commercial and mixed-use developments across the emirate.
District cooling, which distributes chilled water from central plants through pipe networks, is seen as more energy-efficient than conventional air conditioning.
DEWA said the acquisition supports its strategy to deepen investment in infrastructure that meets the city’s fast-growing cooling demand.
Dubai’s real estate boom and rising urbanisation have increased the need for efficient and sustainable cooling solutions.
Dubai Holding sold the stake through its subsidiary Emirates Power Investment as part of a shift toward a more globally diversified investment strategy.
Empower was listed on the Dubai Financial Market in November 2022 in an offering that was heavily oversubscribed.
The remaining 20% of Empower’s shares will continue to trade on Dubai’s stock exchange.