UAE, Abu Dhabi, June 19: The National Central Cooling Company (Tabreed) has announced that ENGIE will now become a major shareholder in the utility company, with an investment of AED 2.8 billion, the company said through a Press communiqué.

In a subsequent Press announcement, Abu Dhabi-based investment company, Mubadala has said that it has agreed to sell 40% of its 82% stake (1.086 billion shares) in Tabreed to ENGIE, while still retaining its position as a major stakeholder with 1.137 billion shares equivalent to 42%.

Speaking on the acquisition, Jasim Thabet, CEO of Tabreed, said: “This is a very positive development for Tabreed, which underscores the progress made by us over the last several years as a leading District Cooling company in the region. As we enter a new phase of growth, we are confident that we will benefit from ENGIE’s global industry-leading experience, especially in the areas of operations and business development, which are cornerstones of our expansion strategy across the GCC region. This new partnership is a strong endorsement of our financial strength and leading market position. We welcome ENGIE and express our continued appreciation to Mubadala for its support as a major shareholder in Tabreed.”

Isabelle Kocher, CEO of ENGIE, added: “We will support Tabreed’s growth by contributing to delivering massively and efficiently low-carbon energy, building on ENGIE’s 30-year experience in GCC countries. District Energy networks are the fastest and most efficient ways to decarbonise dense areas and supply them with clean and renewable energy. As such, they can be seen as backbones of sustainable cities. This acquisition is, therefore, a major step forward in the implementation of ENGIE’s strategy to become leader of the energy transition, by focusing especially on low-carbon solutions and customer intimacy.”

Thabet further said that the transaction is expected to be completed in the third quarter of 2017, once the required regulatory approvals are granted.