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GulfNav closes in on Brooge takeover: UAE maritime player GulfNav received board approval for key terms for its acquisition of oil storage outfit Brooge Petroleum and Gas Investment Company from Brooge Energy, according to a press release (pdf). The acquisition will be executed through a share swap agreement.
GulfNav’s board approved a capital increase of AED 448.5 mn, equivalent to the number of shares to be issued to Brooge. The capital increase is set to be financed through a mix of payments, new shares, and a convertible bond issuance to Brooge.
REMEMBER- Gulfnav submitted an acquisition proposal earlier in the year to the Securities and Commodities Authority (SCA), following its initial proposal back in October 2023. The acquisition was initially expected to close in 4Q 2023. In July, GulfNav said it aimed to complete the evaluation within the coming weeks, and in August, the company was slated to hold a general assembly to initiate the signing procedures for the transaction.
What’s next? The terms of the transaction will be presented to GulfNav shareholders at a general assembly for final approval, subject to SCA clearance. Once approved, GulfNav will move forward with the acquisition.
About Brooge: Founded in 2013, Brooge is a leading player in the crude oil storage sector, with the capacity to store 6.3 mn barrels of oil in Fujairah. The firm plans to double its capacity in the coming years.
