Gulf Navigation Holding PJSC (GULFNAV), a company listed on the Dubai Financial Market, has announced the finalisation of a strategic acquisition agreement with Brooge Energy Limited, valued at AED 3.2 billion. This transaction bolsters GULFNAV’s ambition to evolve into a comprehensive energy logistics entity by substantially enhancing its storage, terminal, and associated infrastructure capacities.
The acquisition encompasses Brooge’s principal assets, including the Brooge Petroleum and Gas Investment Company FZE, Brooge Petroleum and Gas Investment Company Phase III FZE, and BPGIC Phase 3 Limited.
This move is anticipated to significantly augment GULFNAV’s operational capabilities and market standing, reinforcing its presence in the midstream oil and gas logistics sector. The integration of Brooge’s advanced infrastructure is expected to yield operational efficiencies and broaden service offerings, thereby delivering considerable value to stakeholders.
Ahmad Kilani, Board Member and CEO of GULFNAV, remarked, “The completion of this acquisition marks a pivotal milestone for GULFNAV. It underscores our commitment to sustainable growth, operational excellence, and long-term value creation for our shareholders. With this acquisition, we fortify our position in the midstream sector, expand our service portfolio, and unlock new revenue opportunities. We are confident that the integration of Brooge’s assets will enhance our competitive edge and deliver significant value to our stakeholders.”
The transaction will be settled through a combination of cash payments, newly issued shares, and Mandatory Convertible Bonds (MCBs). Specifically, GULFNAV will issue 358,841,476 new shares to Brooge at AED 1.25 per share, subject to a one-year lock-up period. Additionally, MCBs worth AED 2.336 billion will be issued to Brooge, convertible at AED 1.25 per share, also with a one-year lock-up period post-conversion. Furthermore, MCBs worth AED 500 million at AED 1.10 per share will be allocated exclusively to existing GULFNAV shareholders, with major shareholders subscribing to any remaining bonds not taken up by minority investors. These MCBs are to be converted into shares within three months. A cash payment of AED 460 million is also part of the transaction settlement.
