Sunday 02, July 2017 by Georgina Enzer

Herbert Smith Freehills advises ENGIE on its bid to acquire a 40 per cent stake in Tabreed

International law firm Herbert Smith Freehills has advised ENGIE on its bid to acquire a 40 per cent stake in Dubai-listed National Central Cooling Company PJSC (Tabreed) from Mubadala Investment Company (Mubadala), the Abu Dhabi-based strategic investment company.

The transaction amounts to a total consideration for ENGIE of an estimated AED 2.8 billion ($762 million).

ENGIE will become a key strategic shareholder along with Mubadala (which will retain a 42 per cent stake) following the transaction, which is subject to regulatory approval. Closing is expected in Q3 2017.

"We are extremely pleased to have been able to advise one of the firm's most valued clients on their investment into the district cooling sector within the Middle East. This is a sector which is projected to grow as infrastructure within the region continues to develop at pace in the coming years," said Anthony Ellis, Middle East Head Projects and Finance.

Tabreed has steadily grown over the years to become a key player and today provides its innovative cooling solutions to iconic infrastructure projects in the United Arab Emirates and across the Gulf Cooperation Council (GCC). With over 70 district cooling plants located throughout the GCC, the company today delivers over one million refrigeration tonnes to key developments in the region. Its portfolio includes Abu Dhabi’s Al Maryah Island, Yas Island, Sheikh Zayed Grand Mosque, the Dubai Metro, Dubai Parks and Resorts, and the Jebal Omar Development Project in the City of Mecca.

The Herbert Smith Freehills team was led by Dubai-based projects partner Anthony Ellis and corporate partner Zubair Mir and, supported by senior associates Ben Davies and Phil Hanson.

Zubair Mir, Managing Partner for the Middle East, stated:

"This is a fantastic result for all parties concerned in the transaction. With ENGIE now being a key investor in Tabreed, I am sure this will enable Tabreed to consolidate and build on its position in the GCC and drive its expansion in other emerging markets across the MENA region."

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