Engie-backed Tabreed and private equity firm CVC Capital Partners have entered exclusive negotiations to acquire Multiply Group’s district cooling business, PAL Cooling Holding (PCH), in a deal expected to exceed $1 billion, according to two people familiar with the matter who spoke to Reuters.
The two companies submitted the top bid for PCH, which one of the sources said was close to $1.1 billion. Talks between the buyers and seller have now progressed to a bilateral stage.
The potential acquisition reflects growing interest from global private equity firms in Gulf infrastructure assets as regional governments seek to diversify their economies beyond hydrocarbons.
Tabreed, formerly known as National Central Cooling Company, stated in a press release that it does not comment on market speculation but will disclose any material developments as required. CVC declined to comment. Multiply Group did not respond to a request for comment.
