Saudi Arabia’s PIF to buy $250 million stake in UAE Tabreed’s local venture

Published: Updated:
Enable Read mode
100% Font Size

The Public Investment Fund is in talks to buy a stake worth about $250 million in Saudi Tabreed, the local venture of United Arab Emirates-listed National Central Cooling Co., according to people familiar with the matter.

The deal would give the PIF, as the wealth fund is known, a significant holding in the district cooling company ahead of a planned initial public offering in the next two-to-three years, the people said, asking not to be identified as the information is private. Terms of the agreement aren’t finalized and may change, they said.

For all the latest headlines follow our Google News channel online or via the app.

National Central Cooling Co., known as Tabreed, owns a stake in the Saudi business, along with the Kingdom’s Vision International Investment, Al Mutlaq Group and IDB’s Infrastructure Fund II.

A representative for the PIF declined to comment, while Saudi Tabreed didn’t respond to requests for comment.

In recent years, the wealth fund has rapidly expanded to control over $600 billion of assets across the globe and now holds stakes in Lucid Motors and Uber Technologies. In Saudi Arabia, it controls most of the country’s largest companies such as Saudi National Bank and Saudi Telecom Co.

Saudi Tabreed provides centralized cooling systems for urban buildings. The Middle East, where temperatures often soar above 110 degrees Fahrenheit (43 Celsius) during the summer, is the biggest market for such cooling systems. Saudi Tabreed operates a current-contracted capacity of about 751,000 tons of refrigeration, according to its website.

The company already has close ties to the PIF, with agreements to provide cooling for the fund’s Red Sea tourism project and an entertainment district close to Riyadh called Qiddiya.

Read more:

Saudi Arabia’s PIF secures $17 billion in loan

Saudi’s PIF-owned Badeel, ACWA Power to develop MENA’s largest solar energy plant

Saudi Arabia to invest $13 billion to develop 21 entertainment hubs across 14 cities

Top Content Trending