District Cooling Buyout is Welcome Relief for Dubai World Creditors - Middle East Real Time - WSJ:
"Dubai district cooling firm Empower bought local rival Palm Utilities from Dubai World’s investment arm for $500 million, the latest asset sale by the government conglomerate one year before the first repayment under its $25 billion restructuring is due.
The deal, which Empower will fund from its own reserves as well as equity and debt financing, will create the world’s largest district cooling company. District cooling is a process whereby water is chilled at a plant and then channeled through a network of pipes to large-scale developments such as skyscrapers. It is considered a more energy-efficient and less noisy alternative to the rooftop air-conditioning systems commonly found in the Middle East.
The plan to merge the two firms had been mooted since 2011 but took several years of discussions at the highest government levels to be completed. Empower is a joint venture between state utility Dubai Electricity and Water Authority, or Dewa, and Dubai Technology and Media Free Zone, or Tecom. Palm Utilities is a unit of Istithmar World, part of Dubai World."
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