Gulf Nav Shareholders Approve $871 Million Brooge Acquisition
Deal News | Mar 14, 2025 | Zawya
Gulf Navigation Holdings' shareholders have given their approval for the $871 million acquisition of Brooge Energy Limited (BEL). This transaction involves a significant increase in Gulf Nav’s share capital by 320%, achieved through the issuance of 359 million new shares and AED 2.3 billion in mandatory convertible bonds. Additionally, the deal includes AED 460 million in cash and AED 500 million in convertible bonds aimed at prioritizing minority shareholders. The acquisition will grant Gulf Nav control over BEL’s oil storage assets, enhancing storage and logistics capabilities to meet regional midstream oil and gas demands. Initial discontent arose from shareholders due to concerns about dilution and the proposed conversion price by Gulf Nav, which is lower than an alternative valuation by the UAE’s Securities and Commodities Authority. However, the approval went through based on the company’s board recommendation aligning with their own valuation strategy.
Sectors
- Oil & Gas
- Financial Services
Geography
- United Arab Emirates – The company Gulf Navigation Holdings and Brooge Energy Limited along with their operational logistics and storage expansions are based in the UAE.
Industry
- Oil & Gas – The acquisition of Brooge Energy Limited focuses on expanding Gulf Nav's midstream oil and gas services.
- Financial Services – Involves complex financial transactions including mandatory convertible bonds and notable capital restructuring.
Financials
- $871 million – The acquisition value for Brooge Energy Limited by Gulf Navigation.
- AED 3.2 billion – The total amount including share issuance and bonds for the acquisition.
- 320% – The percentage increase in Gulf Navigation's share capital due to the transaction.
- 359 million – Number of new shares to be issued in favor of BEL.
- AED 2.3 billion – Value of the mandatory convertible bonds issued as part of the transaction.
- AED 460 million – Cash component of the transaction.
- AED 500 million – Value of MCBs offered to current shareholders prioritizing minorities.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Gulf Navigation Holdings | Buyer | Company | An entity involved in the acquisition of Brooge Energy Limited, expanding its oil and gas logistics and storage capabilities. |
| Brooge Energy Limited (BEL) | Target | Company | The company being acquired by Gulf Navigation, providing oil storage assets. |
| Securities and Commodities Authority (SCA) | Financial Regulator | Government | Provided an alternative valuation for the proposed share and bond conversions. |