Dubai shipping firm Gulf Navigation (GulfNav) has been given the go-ahead by its shareholders to acquire the assets held by crude storage provider Brooge Energy.
The takeover plan, announced in October 2023, covers $125m in cash payment, the issuance of about 359m new shares to Brooge worth $122m, and $626m in mandatory convertible bonds (MCBs). The transaction also includes $136m MCBs to current shareholders.
The company’s share capital will increase by 320% following the transaction under which GulfNav will acquire Brooge Petroleum and Gas Investment Company (BPGIC) FZE, Brooge Petroleum and Gas Investment Company Phase III FZE, and BPGIC Phase 3 Limited.
“The transaction is expected to significantly enhance Gulf Navigation’s operational capabilities and market position, solidifying its presence in the midstream oil and gas and logistics sectors,” the company said in a statement.
Established in 2003 and listed in the Dubai Financial Market since February 2007, GulfNav has a diversified fleet of chemical tankers, livestock carriers, well stimulation vessels, and offshore support vessels.
Post-acquisition, the company will integrate Fujairah-based Brooge infrastructure to expand storage and logistics capabilities to serve demand in the region and explore alternative fuel storage.
Energy News Beat