Ajman Bank Exits Gulf Navigation Amidst Major Acquisition Shift
Ajman Bank has divested its stake in Gulf Navigation Holding, concluding a series of direct share transactions valued at AED 173.4 million over the past month. Data from the Dubai Financial Market indicates that nine direct deals, each ranging between 2.6 million and 9 million shares, were executed since March 5. This move signifies the bank's complete exit from its investment in the Dubai-based shipping company.
Previously, Ajman Bank held a 6.4% stake in Gulf Navigation as of 2024, which was reduced to 5.6% by January 2025. The bank's decision to divest aligns with its broader strategy to optimize its investment portfolio. In 2024, Ajman Bank reported a record profit before tax of AED 440 million, marking a significant turnaround from a net loss of AED 390 million in the previous year. This financial performance was supported by a total operating income of AED 1.5 billion and a net operating income of AED 736 million.
Gulf Navigation, on the other hand, is advancing its strategic acquisition of Brooge Energy Limited. Shareholders approved the AED 3.2 billion deal on March 14, 2025. The acquisition includes Brooge's assets such as the Brooge Petroleum and Gas Investment Company , located in Fujairah, a key hub for oil storage and bunkering. The transaction is structured with a combination of cash payments, issuance of new shares, and mandatory convertible bonds .
Specifically, Gulf Navigation will issue 358.84 million new shares to Brooge Energy at AED 1.25 per share, accompanied by MCBs valued at AED 2.33 billion, convertible at the same price. An additional AED 500 million in MCBs will be allocated exclusively to existing UAE-based shareholders, with a cash component of AED 460 million completing the transaction. The acquisition is expected to significantly enhance Gulf Navigation's operational capabilities and market position in the midstream oil and gas sector.
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Brooge Energy has faced scrutiny in the past, including a $5 million settlement with the U.S. Securities and Exchange Commission in 2023 over fraud charges related to revenue fabrication between 2018 and 2020. Despite these challenges, Gulf Navigation's leadership views the acquisition as a strategic move to strengthen its logistics and storage services. CEO Ahmad Kilani stated that the deal is projected to enhance the company's revenue and improve earnings before interest, tax, and depreciation over the coming years.
The transaction is anticipated to be completed by the second quarter of 2025, pending regulatory approvals. Gulf Navigation's share capital will increase by 320% following the issuance of new shares and convertible bonds. This expansion reflects the company's commitment to sustainable growth and long-term value creation for its shareholders.
Ajman Bank's exit from Gulf Navigation coincides with its strategic focus on strengthening its financial position. The bank's rights issue in 2024 was oversubscribed 7.4 times, raising AED 550 million and attracting significant interest from both international and local investors. This capital infusion is expected to support the bank's growth strategies and enhance its service offerings.
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