Brooge Energy's Strategic Asset Sale to GulfNav Totals $871 Million
Deal News | May 28, 2025 | Zawya
Dubai-based Gulf Navigation Holding PJSC (GulfNav) has signed a significant acquisition deal with Brooge Energy Ltd valued at $871 million (3.2 billion AED). This transaction involves the purchase of Brooge’s assets and subsidiaries, including Brooge Petroleum and Gas Investment Company FZE and its Phase III counterpart. The strategic acquisition is set to notably expand GulfNav’s capabilities in maritime transport and oil storage, particularly enhancing its infrastructure in Fujairah, a critical port in the UAE. The deal's structure consists of cash payments, newly issued shares, and Mandatory Convertible Bonds. GulfNav will issue 358.8 million new shares valued at AED 1.25 each and AED 2.336 billion in MCBs convertible at the same value. An additional MCB offer of AED 500 million will be available to existing GulfNav shareholders at AED 1.10 per share, along with a cash component of AED 460 million. With this agreement, regulatory approvals and legal conditions are pending before finalization, anticipated by the third quarter of 2025. Notably, Brooge, a Nasdaq-listed entity, has faced controversies, including the temporary detention of a restructuring executive as part of its management overhaul.
Sectors
- Maritime Transportation
- Oil and Gas Storage
- Energy
Geography
- United Arab Emirates – Both GulfNav and Brooge Energy are significant players within the UAE, with key facilities based in Fujairah, a strategic port location.
Industry
- Maritime Transportation – GulfNav operates as a significant player in maritime transport, focusing on shipping and logistics services.
- Oil and Gas Storage – Brooge Energy provides storage solutions for petroleum products, which aligns with the expansion of GulfNav's oil storage infrastructure.
- Energy – Brooge is involved in the broader energy sector, focusing on fuel oil, crude oil, and petroleum products.
Financials
- $871 million – Total acquisition deal value for Brooge Energy’s assets and subsidiaries.
- AED 1.25 – Share value for new shares issued to Brooge.
- AED 2.336 billion – Value of MCBs issued to Brooge, convertible at AED 1.25 per share.
- AED 500 million – Value of additional MCBs offered to existing GulfNav shareholders at AED 1.10 per share.
- AED 460 million – Cash component of the deal.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Gulf Navigation Holding PJSC | Buyer | Company | A Dubai-based shipping firm specializing in maritime transport and oil storage. |
| Brooge Energy Ltd. | Target | Company | Provides oil storage services and associated assets, enhancing GulfNav's infrastructure. |
| Brooge Petroleum and Gas Investment Company FZE | Other - Asset/Subsidiary | Company | A subsidiary of Brooge Energy involved in petroleum and gas investments. |
| Brooge Petroleum and Gas Investment Company Phase III FZE | Other - Asset/Subsidiary | Company | Phase III extension of Brooge's storage facilities. |
| Brinda Darasha | Author | People | Journalist involved in writing the press release. |
| Seban Scaria | Editor | People | Editor responsible for revisiting and finalizing the press release. |