The National Central Cooling Company “Tabreed” announced that it has entered into an agreement with Al Mouj Muscat, through its subsidiary Tabreed Oman Limited, which is 60.54% owned, to acquire the district cooling plant and related assets.
The company explained in a statement to the Dubai Financial Market today that the plant is the exclusive provider of district cooling services for the Al Mouj development project in the Omani capital, Muscat, explaining that this is for 65.4 million dirhams, in addition to the costs of completing the deal.
According to a separate disclosure from the company, the deal includes a concession agreement to be granted and signed between Al Mouj Muscat and Al Mouj Tabreed Company (wholly owned by Tabreed Oman, in which Tabreed owns 60.5%).
Regarding the reasons for executing the deal and its expected effects on the company, its operations and shareholders’ rights, Tabreed indicated that the deal enhances the assets purchased in Tabreed’s operating portfolio in the Sultanate of Oman, in accordance with Tabreed’s long-term plans for growth in the Gulf Cooperation Council countries.
It ruled out that this transaction would materially affect its current operations or the rights of its shareholders.
According to the disclosure, the date of conclusion and execution of the transaction is December 15, 2021 and the transaction is expected to close on January 23, 2022.
Regarding the sources of financing, she explained that Tabreed Oman Company for construction costs will finance the deal through 80% of the bank loan from the National Bank of Oman, 10% from the contribution of existing shareholders, and the remaining 10% from the company’s reserve cash.
She indicated that the loan amount will be repaid to the National Bank of Oman over a period of 12 years, stressing that the deal will not materially affect the results or the financial position of the company, any effect of less than 1% on both the financial position and results.
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