Emicool's exit deal to boost Union Properties’ investments

By: Mahmoud Gamal

Dubai – Mubasher: Union Properties' divestment from Emirates District Cooling (Emicool) will boost its liquidity and investments, in addition to facilitating Emicool’s IPO.

Earlier on Sunday, Union Properties stated that it had sold its 50% stake in Emicool to Dubai Investments in consideration of AED 500 million.

Positive effect

The exiting deal will have a positive effect on Union Properties’ financial results, as the company’s net profit is expected to reach around AED 150 million, said market analyst Ziad Al-Qamiri.

The deal will push up Union Properties’ investments and help it expand abroad, Al-Qamiri added.

The potential IPO

While Dubai Investments became the sole owner of Emicool, the success of the company’s restructuring plan and increasing its net profit will enable it to offer Emicool’s shares at a per-share price higher than the current value, Al-Qamiri commented.

Currently, it is unlikely that Union Properties will participate in any divestment deals now, financial analyst at Mena Corp Issam Kassabieh revealed.

The company will continue its restructuring plans to catalyse its investments and allocate separate divisions for each of mall and hotel investments, the analyst concluded.

Translated by: Muhammad Khalid