French energy firm Engie has completed its acquisition of 40 per cent shares in Abu Dhabi-based district cooling company Tabreed.

MEED reported in June that Engie had signed agreements with Abu Dhabi government-controlled Mubadala Development Company to buy a 40 per cent stake in National Central Cooling Company (Tabreed) and help the UAE-based utility provider’s regional expansion drive.

The deal involves converting all of Mubadala’s mandatory convertible bonds into shares. The investment firm will transfer stocks equivalent to a 40 per cent shareholding in Tabreed to Engie at a price of approximately AED2.62 a per share, which values the deal at AED2.8bn ($762m), Tabreed said in a statement to Dubai Financial Market (DFM), where its shares are traded.

Mubadala will retain the remaining shares and will remain the biggest shareholder in Tabreed ahead of Engie with an approximately 42 per cent stake.

Tabreed operates 71 district cooling plants throughout the GCC. It delivers over 1 million refrigeration tonnes to key developments in the region including Abu Dhabi’s Al-Maryah Island, Yas Island, Sheikh Zayed Grand Mosque, Dubai Metro, Dubai Parks and Resorts, and the Jabal Omar Development in Saudi Arabia.