This acquisition enables IHC to enter the region’s core utility sectors
International Holdings Company (IHC), a publicly listed company on the Abu Dhabi Exchange, recently signed an agreement to acquire PAL Cooling Holding (PAL), a wholly owned subsidiary of the Abu Dhabi-based Royal Group. The acquisition is subject to final shareholders and regulatory approval from the concerned authorities.
This acquisition will allow IHC to enter into the region’s utilities market. The acquisition will see the two companies conduct a share-swap arrangement with IHC acquiring PAL’s entire share capital.
Following the acquisition, IHC’s business interests will include one of UAE’s core district cooling assets, in addition to industrial aquaculture, agricultural, and real estate projects. The utilities segment is one of the GCC’s most promising growth sectors, and by acquiring PAL’s portfolio, IHC will gain a number of advantages, according to a IHC press release.
These include a higher certainty of continuous cash flow, enhanced profitability, and various cost efficiencies across the company’s current pool of assets.
For PAL and its shareholders, the transaction will accelerate PAL’s strategy as a provider of cleaner, more cost-effective cooling in the GCC’s growing district cooling sector, which today makes a significant contribution to the UAE’s diversification agenda.
“The addition of PAL and its business to our group marks an important milestone in IHC’s strategic journey and a defining moment in the future prosperity of each organisation,” commented HE Hamad Abdulla Al Shamsi, Chairman, International Holdings Company.
To date, PAL’s UAE network of district cooling plants comprise a design capacity of 245,000 Refrigeration Tonnes (RT), with a current installed capacity of 85,000 RT. PAL also holds long term concessions of over 450,000 RT and a healthy pipeline of future developments, alongside client partnerships with a number of leading development partners.
The demand for district cooling and PAL’s services continue to rise as GCC nations focus on progress across their sustainability agendas. District cooling consumes up to 50% less electricity compared to conventional air-cooled chillers, while producing fewer carbon dioxide emissions.
