Dubai Electricity and Water Authority PJSC (DEWA), the exclusive provider of electricity and water services in Dubai, has announced a significant increase in its ownership stake in Emirates Central Cooling Systems Corporation PJSC (Empower). This strategic move sees DEWA acquiring an additional 24% stake, raising its total ownership to 80%. The transaction involved purchasing 2.4 billion shares from Emirates Power Investment LLC, a subsidiary of Dubai Holding, for a total consideration of AED 5.184 billion.

This acquisition aligns with DEWA's long-term growth strategy and underscores its commitment to the district cooling sector, which plays a pivotal role in sustainable urban infrastructure and energy efficiency across Dubai. District cooling systems are integral to Dubai's vision of becoming a sustainable city, and this acquisition reinforces DEWA's leadership in this sector.

HE Saeed Mohammed Ahmad Al Tayer, Managing Director and CEO of DEWA, expressed his satisfaction with the transaction, stating that it strengthens DEWA's strategic position and supports Dubai's development agenda. The move is seen as a testament to DEWA's dedication to supporting the Emirate's growth in line with the vision of Dubai's leadership.

From a financial perspective, the acquisition is a significant investment in Empower, which is a leading provider of district cooling services in the region. The purchase price of AED 2.16 per share reflects a calculated investment in a sector that is expected to grow as Dubai continues to expand its infrastructure.

For investors, DEWA's increased stake in Empower may signal a positive outlook for the company's future earnings potential in the district cooling sector. However, given the substantial financial commitment involved, potential investors should carefully consider the broader economic conditions and DEWA's overall financial health before making investment decisions.

In conclusion, while DEWA's acquisition of additional shares in Empower strengthens its market position, investors are advised to adopt a 'hold' strategy. This approach allows them to monitor DEWA's performance and the district cooling sector's growth trajectory before making further investment decisions.