Dubai’s Majid Al Futtaim hires HSBC for sale of district cooling unit

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Updated 13 October 2020

Dubai’s Majid Al Futtaim hires HSBC for sale of district cooling unit

  • Majid Al Futtaim is the largest mall operator in the Middle East

DUBAI: Dubai’s Majid Al Futtaim (MAF), which develops shopping malls across the Middle East, is putting its district cooling unit up for sale, four sources with knowledge of the matter told Reuters.

District cooling firms deliver chilled water via insulated pipes to cool offices, industrial and residential buildings.

MAF has hired HSBC to tender the deal, said the sources, who declined to be named as the matter is not public.

MAF, which also operates the Middle East franchise of Carrefour, in a statement on Tuesday said it continually assesses its business portfolio to ensure it remains “fit for purpose and positioned for long term sustainable growth.

“Accordingly, we explore new opportunities on a regular basis, carrying out thorough assessments before committing to any course of action.”

MAF added that it would communicate any changes to its business. HSBC declined to comment.

One of the sources said MAF could seek around 500 million dirhams ($136.14 million) for the unit, which comprises chillers connected to its hotels and shopping malls.

A second source said that MAF had sounded out potential investors over the summer, adding that the company had yet to finalize exactly which assets would be included in the deal, which the source said could be worth around 1 billion dirhams.

The sources said the sale will attract the attention of UAE district cooling firm Tabreed, which bought an 80 percent stake in Emaar Properties’ Downtown Dubai district cooling business earlier this year.


Dubai builder Arabtec to file application for insolvent liquidation

Updated 11 min 16 sec ago

Dubai builder Arabtec to file application for insolvent liquidation

  • Board conclude that it is no longer tenable for the company to continue operating outside of a formal insolvency process
  • The court application will also request a number of other companies in the group be placed into insolvent liquidation at the same time

DUBAI: UAE Builder Arabtec Holding confirmed at a general assembly meeting on Monday it will, at the earliest opportunity, file an application for its insolvent liquidation at the courts.

“In accordance with the resolution of the company’s shareholders at the general assembly meeting held on Sept. 30, 2020, the conclusion was reached following a two-month period of discussions with key stakeholders,” state news agency WAM reported.

“The Board has concluded that it is no longer tenable for the company to continue operating outside of a formal insolvency process and that it is in the best interests of the company’s stakeholders that the company be placed into an insolvent liquidation (subject to court approval) at the earliest opportunity,” the report added.

The court application will also request that Arabtec Construction LLC, Arabtec Constructions LLC, Austrian Arabian Readymix Concrete Co LLC and Arabtec Precast LLC (collectively the Impacted Companies) will also be placed into insolvent liquidation at the same time.

No application has been made with regards to other subsidiaries and the builder intends to continue to engage with stakeholders to explore options open to it, the report added.