Gulf Navigation Raises $136M to Acquire Brooge Assets
Deal News | Jul 14, 2025 | Zawya
Dubai-based Gulf Navigation Holding, a key player in maritime transport, has raised 500 million dirhams ($136 million) through the sale of Mandatory Convertible Bonds (MCBs) to partly finance its acquisition of Brooge Energy Limited. The acquisition, totaling AED 3.2 billion, is aimed at enhancing GulfNav's oil storage capabilities, particularly in Fujairah, a significant bunkering hub in the UAE. The funding strategy includes issuing new shares to Brooge and further MCBs, all with a one-year lock-up period. The conversion price for MCBs and shares is set at AED 1.25, with the deal completion expected by Q3 2025. GulfNav will not initiate a second bond tranche due to sufficient funds raised initially. This strategic acquisition is poised to double GulfNav's storage infrastructure, underscoring its expansion ambitions in UAE's maritime and energy sector.
Sectors
- Maritime Transport
- Oil and Gas Storage
- Investment and Finance
Geography
- United Arab Emirates – Gulf Navigation is based in Dubai, and the acquisition will strengthen its operations in the UAE, particularly in Fujairah.
Industry
- Maritime Transport – Gulf Navigation Holding operates in the maritime transport sector, focusing on crude and oil product shipping.
- Oil and Gas Storage – GulfNav's acquisition of Brooge's assets enhances its storage infrastructure, supporting its expansion in oil and gas storage capacity.
- Investment and Finance – The sale of Mandatory Convertible Bonds and issuance of shares are financial strategies to fund the acquisition.
Financials
- $136 million – The amount raised by GulfNav through the sale of Mandatory Convertible Bonds.
- AED 3.2 billion – Total cost of acquiring Brooge Energy Limited's assets.
- AED 1.25 – Conversion price per share for both new shares and MCBs issued.
- 359 million new shares – The number of new shares to be issued by GulfNav to Brooge.
- AED 2.3 billion – Additional MCBs to be issued to Brooge, convertible to shares.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Gulf Navigation Holding (GulfNav) | Acquirer | Company | A Dubai-based shipping company focusing on maritime transport and oil storage. |
| Brooge Energy Limited (BEL) | Target Company | Company | A NASDAQ-listed company focused on oil storage solutions. |
| Brooge Petroleum and Gas Investment Company FZE | Subsidiary | Company | A subsidiary of Brooge Energy involved in petroleum and gas investment. |
| Brooge Petroleum and Gas Investment Company Phase III FZE | Subsidiary | Company | A division of Brooge Energy for expanded investment in petroleum and gas sectors. |
| NASDAQ | Stock Exchange | Company | U.S.-based stock exchange where Brooge Energy Limited is listed. |