Dubai: The Abu Dhabi headquartered district cooling company Tabreed has sold 44 per cent stake in its subsidiary Qatar District Cooling Co. for Dh2.77 billion. It was acquired by United Development Co.
The decision comes from a need to dispose of assets in a “non-core market”. “We don’t expect any material impact on the company and its operations, and the rights of its shareholders due to this divestment,” Tabreed said in a statement.
Tabreed in the recent past has been acquiring multiple assets in its home market, notably through deals with Emaar and Aldar last year. The company has also earmarked markets such as Egypt and India for new ventures to help with future growth.
“The proceeds (from the Qatar sale) will be used to finance further growth of Tabreed’s portfolio in key markets,” the statement added.
This transaction should increase the company's cash balance by Dh417 million and the other income by Dh65m (before taxes, if any). It will reduce the assets held for sale by Dh350 million. On an annual basis, this will result in lower share of results by approximately Dh40 million.