Dubai – Mubasher: The shareholders of Gulf Navigation Holding approved the strategic acquisition of assets and companies owned by Brooge Energy Limited (BEL) for a total value of AED 3.19 billion.
The shareholders granted their approval at the general assembly meeting that was held on 13 March 2025, according to a press release.
Gulf Navigation acquired 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 improve the DFM-listed company’s operational capabilities and market position, anchoring its presence in the midstream oil and gas and logistics sectors.
It aligns with Gulf Navigation’s long-term vision to become a key player in the energy sector by expanding its storage and logistics capabilities.
Brooge Energy’s infrastructure, which includes advanced facilities for the storage of fuel oil, crude oil, and petroleum products, will complement GULFNAV’s existing operations.
This integration is expected to drive operational efficiencies, boost service offerings, and create substantial value for stakeholders.
The acquisition will be settled through a combination of cash, newly issued shares, and mandatory convertible bonds (MCBs).
Gulf Navigation will issue 358.84 million new shares to Brooge Energy at AED 1.25 per share, with a one-year lock-up period.
It will also offer MCBs valued at AED 2.33 billion to Brooge Energy, convertible at AED 1.25 per share, with a one-year lock-up period post-conversion.
This is in addition to issuing MCBs worth AED 500 million at AED 1.10 per share, exclusively allocated to existing UAE-based group’s 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.
Furthermore, the transaction also includes a cash payment of AED 460 million.
Ahmad Kilani, Board Member and CEO of GULFNAV, commented: “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. We are confident that the integration of Brooge’s assets will enhance our competitive edge and deliver significant value to our stakeholders," Kilani added.
In the 12-month period that ended on 31 December 2024, Gulf Navigation turned to net losses valued at AED 22.79 million, compared to net profits worth AED 21.27 million in 2023.
