Abu Dhabi-based Multiply Group announced today that it has entered into an agreement to monetize 100 percent of its shares in its district cooling subsidiary, PAL Cooling Holding, for around AED3.8 billion ($1.03 billion) to a consortium comprising Tabreed and CVC DIF.
The transaction, which is still subject to the receipt of regulatory approvals, marks a significant milestone for Multiply Group, which will further unlock substantial value and strengthen the group’s liquidity position. The group said that future proceeds will be strategically deployed to accelerate growth across core verticals and support further global expansion ambitions.
Liquidity to fuel Multiply Group’s next phase of growth
PAL Cooling Holding, a leading player in the UAE’s district cooling sector, was founded in 2006 and currently operates five active district cooling plants across the country. The company maintains 8 long-term concessions and strategic partnerships with some of the UAE’s leading real estate developers, servicing key residential, commercial and mixed-use developments, most notably on Abu Dhabi’s Reem Island.
“The monetization of PAL Cooling Holding is a deliberate step in our portfolio optimization strategy, aimed at delivering superior returns to our shareholders. It reflects our ability to realize significant value from our assets while enhancing liquidity to fuel Multiply Group’s next phase of growth—both across our core verticals and on the global stage,” said Samia Bouazza, group CEO and managing director of Multiply Group.
Multiply Group initially acquired a 100 percent stake in PAL Cooling and its subsidiaries in July 2021. Since then, the company has been integrated under the group’s Energy & Utilities vertical, contributing to its recurring income base and benefiting from operational efficiencies and strategic alignment within the broader portfolio.
UAE’s rapid real estate development boosts demand for district cooling infrastructure
The sale process of Multiply Group’s PAL Cooling Holding attracted strong interest from numerous strategic and financial investors, given the UAE’s rapid real estate development and rising demand for district cooling infrastructure. The group has been advised by Standard Chartered and Clifford Chance. Meanwhile, Tabreed and CVC DIF have been advised by Citi, Synergy Consulting and White & Case.
“PAL Cooling services its clients under long-term, concession-based contracts, in a fast-growing urban environment. The company has a strong track record of developing and constructing high-quality and electrified district cooling plants to deliver reliable, energy-efficient cooling solutions. Building on CVC DIF’s long-term track record in the sector, we are delighted to partner with Tabreed, a leading district cooling company in the Middle East. Together with our partners, we are convinced that PAL Cooling is a high-quality investment that will provide our investors with solid returns, while offering the potential for long-term growth and sustainable value creation,” said Gijs Voskuyl, managing partner at CVC DIF.
For his part, Khalid Al Marzooqi, CEO of Tabreed, said that as the company enters a new phase of growth in Abu Dhabi alongside partners, CVC DIF, the benefits brought by this acquisition will be substantial. As part of Tabreed’s portfolio, these additional plants will be operated and maintained by the world’s leading experts in sustainable cooling.
“The acquisition also serves to strengthen our already investment-grade status with safe, long-term concession agreements and assured future growth, evidenced by current and planned developments on Reem Island,” he added.
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Group to expand presence in priority verticals
The PAL Cooling Holding transaction follows Multiply Group’s solid Q1 2025 financial results, which recently reported AED572 million in EBITDA excluding fair value changes, up 19 percent year-on-year, and AED585 million in revenue, a 50 percent increase year-on-year, driven by growth across all verticals and the consolidation of The Grooming Company Holding, Excellence Driving and a full quarter consolidating BackLite Media. The group also maintained a robust asset base of AED43 billion.
Following this transaction, Multiply Group will further enhance the efficiency of its balance sheet, unlocking capital to deepen its presence in priority verticals— Energy, Mobility, Media & Communications, Wellness & Beauty, and Retail & Apparel—as well as opportunistic investments through Multiply+.
This strategic move reinforces the group’s commitment to agile capital deployment and long-term value creation through its dual investment model.
