Gulf Nav Shareholders Approve $871M Brooge Acquisition

Gulf Navigation Holdings, a prominent company in maritime transportation, has secured shareholder approval for its substantial acquisition valued at AED 3.2 billion ($871 million) of Brooge Energy Limited. The transaction includes a significant restructuring of Gulf Nav's capital, involving the issuance of 359 million new shares in favor of Brooge and AED 2.3 billion in mandatory convertible bonds (MCBs). Shareholders were initially concerned about the dilution impact due to the company's lower proposed conversion price compared to an alternative valuation by the UAE financial regulator, Securities and Commodities Authority. Nonetheless, the board’s valuation was eventually accepted. The acquisition will enable Gulf Nav to assimilate Brooge's oil storage assets, enhancing its capacity in the midstream oil and gas service sector, with a focus on expanding its Fujairah-based infrastructure and potential engagement in alternative fuel storage.