The UAE district cooling company Empower has acquired Dubai-based Palm Utilities and Palm District Cooling in an acquisition deal worth $500m.

The funding features a combination of internal accruals, equity and debt financing.

The acquisition of Palm District Cooling is the latest asset to be sold off by parent company Istithmar, which is in turn a subsidiary of the indebted-Dubai World conglomerate.

Empower is expecting the deal to increase its regional market share to approximately 70 per cent.

District cooling is promoted as a more energy-efficient, environmentally friendly way of providing air-conditioning to homes and offices. It provides chilled water used to fuel air-conditioning systems rather than using electricity.