GULFNAV shareholders approve Brooge Energy asset buyout in AED3.3bn deal
Gulf Navigation Holding PJSC (GULFNAV), the DFM-listed maritime and shipping company, said its shareholders have approved the strategic acquisition of assets and companies owned by Brooge Energy Limited (BEL), a UAE-based midstream oil storage and service provider.
The approval was granted at the company's General Assembly Meeting held on Thursday, March 13, it said.
GULFNAV's strategic acquisition approval
The acquisition includes Brooge Petroleum and Gas Investment Company FZE, Brooge Petroleum and Gas Investment Company Phase III FZE, and BPGIC Phase 3 Limited.
The transaction is expected to significantly enhance GULFNAV's operational capabilities and market position, solidifying its presence in the midstream oil & gas and logistics sectors.
GULFNAV said the acquisition will be settled through a combination of cash, newly issued shares, and Mandatory Convertible Bonds (MCBs).
While the cash component of the transaction will involve a payment of AED460 million, the company will issue 358.84 million new shares to BEL at AED1.25 per share, with a one-year lock-up period.
The company will also issue MCBs worth AED2.34 billion to BEL, convertible at AED1.25 per share, with a one-year lock-up period post-conversion.
Besides, it will also issue MCBs worth AED500 million at AED1.10 per share exclusively allocated to existing GULFNAV shareholders.
The acquisition aligns with GULFNAV's long-term vision to become a dominant player in the energy sector by expanding its storage and logistics capabilities, the company said.
BEL's state-of-the-art infrastructure, which includes advanced facilities for the storage of fuel oil, crude oil, and petroleum products, will complement GULFNAV's existing operations, it said, adding that the integration is expected to drive operational efficiencies, enhance service offerings, and create substantial value for stakeholders.
Ahmad Kilani, Board Member and CEO of GULFNAV, said the approval of the acquisition marks a transformational milestone for the company.
'This deal reinforces our commitment to sustainable growth, operational excellence, and long-term value creation for our shareholders.
'With this acquisition, we strengthen our position in the midstream sector, expand our service portfolio, and unlock new revenue opportunities,' he said.
The Company's Board of Directors has been authorized to take all necessary actions to finalize the acquisition, including completing regulatory approvals, amending the Articles of Association, and overseeing capital increase procedures. The transaction is expected to be completed within the second quarter of this year, subject to regulatory approvals and customary closing conditions.
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