February 4, 2020 / 11:25 AM / 12 days ago

UPDATE 1-UAE's Tabreed close to buying Emaar Properties' district cooling unit -sources

(Adds Tabreed comment)

By Hadeel Al Sayegh

DUBAI, Feb 4 (Reuters) - Dubai-listed National Central Cooling Co (Tabreed) is in advanced talks to buy Emaar Properties’ district cooling business, two sources familiar with the matter said.

District cooling firms deliver chilled water via insulated pipes to cool offices, industrial and residential buildings. The Emaar business was established in 2004 and operates in United Arab Emirates, according to the company’s Linkedin page, which gave no details about its size.

Tabreed, whose biggest shareholders are Abu Dhabi state fund Mubadala Investment Company and France’s Engie SA (ENGIE.PA), has appointed HSBC to advise on the purchase, which is at an advanced stage, said the sources, declining to be named as the matter is not public.

Emaar hired advisors including Standard Chartered for the sale of the business, Reuters reported in May, as part of a broader plan to offload non-core activities.

Emaar said it did not comment on speculation, adding by email: “As and when we have confirmation on announcements we will share further information.”

Tabreed said it “does not comment on market rumors or speculation related to its commercial operations,” adding that “all disclosures relating to material transactions are made to the market once such transactions are concluded.”

HSBC and Standard Chartered declined to comment.

Emaar’s core businesses focus is on property, retail and hospitality. It developed the world’s tallest skyscraper, the Burj Khalifa, and is 32% owned by the Dubai government. (editing by John Stonestreet, Kirsten Donovan)

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