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GulfNav edges closer to Brooge takeover: Maritime and shipping company GulfNav is set to close its acquisition of oil storage outfit Brooge Petroleum and Gas Investment Company from Brooge energy within the next six to eight weeks, Gulfnav said in a DFM disclosure (pdf).
GulfNav is set to get a capital boost: The announcement follows GulfNav board’s approval to issue mandatory convertible bonds and new shares, as well as inject liquidity into the firm to raise enough capital to complete the transaction, according to a separate bourse filing (pdf).
REMEMBER- Earlier this year, Gulfnav submitted a proposal for the structure of the acquisition of oil storage outfit Brooge Petroleum to the Securities and Commodities Authority, after bidding to fully acquire the company from Nasdaq-listed Brooge Energy back in October 2023. The acquisition was initially expected to close in 4Q 2023.
Following the acquisition, GulfNav’s market cap will top AED 20 bn, GulfNav board member Abdul Hadi Al Saadi told CNBC Arabia (watch, runtime, 2:23). The company is also expected to receive an upgrade on the MSCI index. Al Saadi added that investment funds are anticipated to pour between USD 400-500 mn into the company post-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.
