GULFNAV Shareholders Approve AED 3.2 Billion Acquisition of Brooge Assets
Deal News | Mar 14, 2025 | Zawya
Gulf Navigation Holding PJSC (GULFNAV) has received shareholder approval for a strategic acquisition of Brooge Energy Limited's assets totaling AED 3.2 billion. The acquisition includes Brooge Petroleum and Gas Investment Company FZE, among others. The transaction, which involves a combination of cash, newly issued shares, and Mandatory Convertible Bonds (MCBs), aims to enhance GULFNAV’s operational capabilities and market position within the midstream oil and gas sector. Shareholders approved the plan during the General Assembly Meeting on March 13, 2025. The proposed arrangement includes a cash payment of AED 460 million, and the issuance of new shares and MCBs significantly increases GULFNAV’s share capital. The Board is tasked with overseeing the finalization of the acquisition, targeting completion in the second quarter of the year. This strategic move will reinforce GULFNAV’s long-term vision to establish itself as a leader in energy storage and logistics, supported by the incorporation of Brooge’s advanced infrastructure.
Sectors
- Maritime and Shipping
- Midstream Oil & Gas
- Logistics
Geography
- United Arab Emirates – GULFNAV is headquartered in Dubai, UAE, and the acquisition of assets is expected to bolster its strategic position within the region.
Industry
- Maritime and Shipping – GULFNAV operates within this sector by providing maritime services including chemical tankers and livestock transport.
- Midstream Oil & Gas – The acquisition targets Brooge Energy's assets, which are central to the storage and logistics of oil and gas, a key part of the midstream sector.
- Logistics – The transaction enhances GULFNAV's logistics capabilities significantly, a core strategic goal behind the acquisition.
Financials
- AED 3.2 billion – Total valuation of the acquisition transaction.
- AED 460 million – Cash payment component of the acquisition deal.
- 358,841,476 new shares at AED 1.25 per share – New equity issued to Brooge Energy Limited as part of the transaction settlement.
- AED 2.336 billion – Value of MCBs issued to Brooge Energy Limited, convertible post-acquisition.
- AED 500 million at AED 1.10 per share – MCBs allocated to existing shareholders with a conversion timeframe within 3 months.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Gulf Navigation Holding PJSC | Acquirer | Company | A publicly traded company on the Dubai Financial Market known for its maritime activities. |
| Brooge Energy Limited | Target Company | Company | The owner of the assets and companies that GULFNAV plans to acquire. |
| Brooge Petroleum and Gas Investment Company FZE | Target Subsidiary | Company | One of the entities to be acquired by GULFNAV, owning substantial oil and gas infrastructure. |