According to persons acquainted with the situation, the Public Investment Fund is in discussions to purchase a stake in Saudi Tabreed, the local subsidiary of the UAE-listed National Central Cooling Co., valued at roughly $250 million.
The deal would give the PIF, as the wealth fund is known, a significant holding in the district cooling company ahead of a planned initial public offering in the next two-to-three years. Terms of the agreement aren’t finalized and may change, they said. National Central Cooling Co., known as Tabreed, owns a stake in the Saudi business, along with the kingdom’s Vision International Investment, Al Mutlaq Group and IDB’s Infrastructure Fund II.
A representative for the PIF declined to comment, while Saudi Tabreed didn’t respond to requests for comment. The PIF is a key part of Crown Prince Mohammed Bin Salman’s plans to wean the kingdom’s economy off its reliance on oil. In recent years, the fund has rapidly expanded to control over $600 billion of assets across the globe and now holds stakes in Lucid Motors and Uber Technologies. In Saudi Arabia, it controls most of the country’s largest companies such as Saudi National Bank and Saudi Telecom Co.
For metropolitan structures, Saudi Tabreed offers centralised cooling systems. The largest market for these cooling systems is the Middle East, where summertime highs sometimes exceed 110 degrees Fahrenheit (43 degrees Celsius). According to its website, Saudi Tabreed now has a contracted capacity for around 751,000 tonnes of refrigeration.
