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PIF takes 30 per cent stake in Saudi Tabreed

21 December 2022

Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), has bought a 30 per cent stake in district cooling company Saudi Tabreed through a private placement of shares.

Saudi Tabreed’s shareholders include UAE-listed National Central Cooling Company (Tabreed), Saudi Arabia’s Vision International, IDB Infrastructure Fund (II) and Riyadh-based Al-Mutlaq Group.

The deal is worth about $250m, according to reports by Bloomberg and Reuters. It is subject to completion procedures.

Tabreed has also increased its shares in Saudi Tabreed to 21.8 per cent by acquiring additional shares from Al-Mutlaq Group for SR54.6m ($14.63m), the firm said.

RELATED READ: Tabreed eyes expansion and technology investments

Saudi Tabreed develops, invests and maintains district cooling schemes on a build, operate, own (BOO) or build, operate, own and transfer (BOOT) basis.

The company is understood to have delivered reliable and economically efficient district cooling services for airports, government buildings and other real estate developments in the kingdom.

Saudi Tabreed established close ties to the PIF before the stake sale. The company provides district cooling services to urban developments across Saudi Arabia, with agreements to provide cooling for the Red Sea tourism project and Riyadh's Qiddiya entertainment district. It also has long-term contracts with Saudi Aramco.

The PIF now has a significant holding in the district cooling company ahead of Saudi Tabreed’s reported planned initial public offering within the next two to three years.

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