Latest news with #BroogeEnergy
Arabian Post
12 hours ago
- Business
- Arabian Post
GulfNav's $871M Deal Signals Strategic Shift in Energy Logistics
Dubai-listed Gulf Navigation Holding PJSC has secured shareholder approval for a AED 3.2 billion acquisition of Brooge Energy Ltd.'s assets, marking a significant expansion into the midstream oil and gas sector. The transaction, involving cash, newly issued shares, and mandatory convertible bonds , is expected to close in the second quarter of 2025, pending regulatory approvals. The acquisition encompasses Brooge Petroleum and Gas Investment Company FZE, Brooge Petroleum and Gas Investment Company Phase III FZE, and BPGIC Phase 3 Limited. These entities operate advanced storage facilities in Fujairah, a strategic oil storage and export hub. GulfNav plans to integrate these assets to enhance its storage and logistics capabilities, aligning with its long-term vision to become a dominant player in the energy sector. The deal's financial structure includes the issuance of 358,841,476 new shares to Brooge Energy at AED 1.25 per share, with a one-year lock-up period. Additionally, MCBs worth AED 2.336 billion will be issued to Brooge, convertible at the same price and subject to a similar lock-up period post-conversion. An extra AED 500 million in MCBs, priced at AED 1.10 per share, will be allocated to existing GulfNav shareholders, with major shareholders covering any unsubscribed bonds. A cash payment of AED 460 million completes the settlement. ADVERTISEMENT CEO Ahmad Kilani stated that the acquisition is expected to generate significant operational synergies, including cost savings from integrated logistics and increased storage capacity. Financially, the deal is projected to enhance GulfNav's revenue streams and improve EBITDA margins over the next few years. The issuance of new shares and MCBs will increase GulfNav's share capital by approximately 320%. Brooge Energy, founded in 2013 and based in the Cayman Islands, operates through subsidiaries focused on clean petroleum products, biofuels, and crude oil storage. Its facilities in Fujairah are among the most technologically advanced in the sector, adhering to international standards. The company's strategic location outside the Strait of Hormuz positions it advantageously in global oil logistics. The acquisition aligns with GulfNav's commitment to sustainable growth and operational excellence. Post-acquisition, the company plans to expand its storage and logistics capabilities to meet the growing demand for midstream oil and gas services in the region. By leveraging Brooge's advanced infrastructure, GulfNav aims to improve operational efficiencies, diversify its service offerings, and unlock new revenue opportunities. Additionally, the company will continue to support the UAE's sustainability goals by exploring innovative solutions, such as alternative fuel storage and reduced carbon emissions. The transaction is subject to customary closing conditions and regulatory approvals. GulfNav's Board of Directors has been authorized to take all necessary actions to finalize the acquisition, including completing regulatory approvals, amending the Articles of Association, and overseeing capital increase procedures.
Zawya
3 days ago
- Business
- Zawya
GulfNav's Brooge acquisition to boost income, slash costs
Dubai-based shipping firm Gulf Navigation Holding (GulfNav) expects an increase in come and lower costs following its acquisition of Brooge Energy. GulfNav's CEO Ahmed Al-Kilani said the merger would lead to the establishment of an integrated logistics company specialising in the transportation and storage of fuel, petroleum products, and petrochemicals. Kilani told CNBC Arabia satellite news TV that the GulfNav, which is specialised in the transportation of petroleum and petrochemical products, has recently overcome difficult condition due to weak liquidity and operational challenges. He noted that the company is now in a stable stage and preparing for a new phase of growth, adding that the Company's Board had two options-- either proceed with gradual expansion by strengthening operations and increasing the marine fleet, which would require a long time, or move towards a faster path through acquisition or merger, which was achieved through this deal with Brooge Energy. He said GulfNav possesses significant assets, including storage tanks for crude oil, petroleum products, and petrochemicals in the Port of Fujairah, which is a global strategic location for storage. He pointed out that these tanks rely on advanced technologies that enable effective operational integration between the two companies. 'This step will open new horizons in global markets and contribute to increasing revenues and reducing expenses due to the integration of services and assets.' Kilani said there are promising opportunities for expanding the operations of both Gulf Navigation and Brooge Energy, expecting Brooge to expand outside the UAE, amidst global moves towards clean energy. (Writing by Nadim Kawach; Editing by Anoop Menon) (
Arabian Business
4 days ago
- Business
- Arabian Business
Dubai's GULFNAV acquires Brooge Energy in AED 3.2bn strategic deal
Gulf Navigation Holding PJSC (GULFNAV), a leading maritime and shipping company, announced the acquisition of Brooge Energy Limited (Brooge), a leading crude oil, fuel oil and refined fuel products storage company. The acquisition is done for AED 3.2 billion, and the transaction involves a mix of cash, newly issued shares and Mandatory Convertible Bonds (MCBs), GULFNAV said. The two companies signed the sale and purchase agreement on Wednesday, May 28, at Brooge's headquarters in Dubai. GULFNAV is listed on the Dubai Financial Market, while Brooge is listed on NASDAQ. The agreement finalises GULFNAV's acquisition of the assets and subsidiaries of Brooge, including Brooge Petroleum and Gas Investment Company FZE, Brooge Petroleum and Gas Investment Company Phase III FZE, and BPGIC Phase 3 Limited. GULFNAV said the acquisition is in line with its strategy to become an integrated energy logistics powerhouse by significantly expanding its storage, terminal, and related infrastructure capabilities. The acquisition transaction involves the issuance of 358.8 million new shares to Brooge at AED 1.25 per share, subject to a one-year lock-up, AED 2.336 billion in MCBs issued to Brooge, convertible at AED 1.25 per share, AED 500 million in MCBs exclusively offered to GULFNAV's existing shareholders at AED 1.10 per share and a cash component of AED 460 million. Brooge, founded in 2013, is one of the most technologically advanced companies in the crude oil storage services sector. The acquisition is expected to strengthen GULFNAV's market position and boost its operational efficiency and competitive edge. It will also diversify the company's revenue streams and deepen relationships with key strategic partners in the energy sector. Ahmad Kilani, Board Member and CEO of GULFNAV, said the signing marks a pivotal moment in the company's growth journey. 'This is more than an acquisition, it's a strategic integration that will allow us to unlock new opportunities in the energy logistics space. 'By combining our maritime capabilities with Brooge's cutting-edge infrastructure, we are well-positioned to deliver value to our customers, shareholders, and the UAE's broader energy ecosystem,' he said. Following the signing of the sale and purchase agreement, both companies will work closely to fulfill the remaining conditions required to complete the transaction, including securing final regulatory approvals, satisfying all contractual and legal completion terms, and executing the necessary corporate actions.
Zawya
4 days ago
- Business
- Zawya
Dubai's GulfNav, Brooge Energy sign $871mln acquisition deal
Dubai-based shipping firm Gulf Navigation Holding PJSC (GulfNav) has entered into an asset sale agreement with Brooge Energy Ltd. for a total consideration of 3.2 billion dirhams ($871) million. The deal is for the sale of the assets and subsidiaries of Brooge, including Brooge Petroleum and Gas Investment Company FZE, and Brooge Petroleum and Gas Investment Company Phase III FZE. GulfNav is a major operator in maritime transport and oil storage. The acquisition of Brooge, with its facilities for the storage of fuel oil, crude oil, and petroleum products, is expected to double GulfNav's storage infrastructure, particularly in Fujairah, a critical bunkering port in the UAE. The acquisition involves a settlement structure comprising cash, newly issued shares, and Mandatory Convertible Bonds (MCBs). This includes: -Issuance of 358.8 million new shares to Brooge at AED 1.25 per share, subject to a one-year lock-up. -AED 2.336 billion in MCBs issued to Brooge, convertible at AED 1.25 per share. -AED 500 million in MCBs exclusively offered to GULFNAV's existing shareholders at AED 1.10 per share. -A cash component of AED 460 million Following the agreement, both parties will collaborate to meet all remaining conditions, including regulatory approvals, legal requirements, and corporate actions. GulfNav will increase its capital, issue new shares to Brooge Energy, and launch a capital raise via MCBs. The deal is expected to be finalised by Q3 2025. Nasdaq-listed Brooge has seen controversy in recent years. A restructuring executive from a management consultant working on the overhaul of the company was detained in the UAE last year, but was later released. (Writing by Brinda Darasha; editing by Seban Scaria)
Zawya
4 days ago
- Business
- Zawya
GULFNAV and Brooge sign AED 3.2bln acquisition agreement
Dubai, UAE: Gulf Navigation Holding PJSC ('GULFNAV'), a leading maritime and shipping company listed on the Dubai Financial Market, and Brooge Energy Limited ('Brooge'), a Leading crude oil, fuel oil and refined fuel products storage company Listed on NASDAQ, held a signing ceremony at Brooge's headquarters in Dubai to formalize the Sale and Purchase Agreement (SPA) in accordance with the acquisition structure that was previously approved by GULFNAV's shareholders in the general assembly meeting dated 13 March 2025, marking a key milestone in the AED 3.2 billion strategic acquisition. This agreement finalizes GULFNAV's acquisition of the assets and subsidiaries of Brooge, including Brooge Petroleum and Gas Investment Company FZE, Brooge Petroleum and Gas Investment Company Phase III FZE, and BPGIC Phase 3 Limited. A Strategic Leap Forward Signing the agreement reflects the continued commitment of both companies to transform the regional midstream oil and gas landscape. This transaction reinforces GULFNAV's strategy to become an integrated energy logistics powerhouse by significantly expanding its storage, terminal, and related infrastructure capabilities. The acquisition, involves a settlement structure comprising cash, newly issued shares, and Mandatory Convertible Bonds (MCBs). This includes: Issuance of 358.8 million new shares to Brooge at AED 1.25 per share, subject to a one-year lock-up. AED 2.336 billion in MCBs issued to Brooge, convertible at AED 1.25 per share. AED 500 million in MCBs exclusively offered to GULFNAV's existing shareholders at AED 1.10 per share. A cash component of AED 460 million. Brooge was founded in 2013, and today it is one of the most technologically advanced companies in the crude oil storage services sector, as the Company's facilities and terminals use advanced technologies consistent with the best international standards. Brooge has strengthened its investments and presence in the Emirate of Fujairah being an important hub in oil storage and exporting. This acquisition is expected to strengthen GULFNAV's market position and boost its operational efficiency and competitive edge. It will also diversify the Company's revenue streams and deepen relationships with key strategic partners in the energy sector, positioning GULFNAV to capitalize on future growth opportunities across local and regional markets. Through this strategic expansion, the Company aims to enhance financial performance and deliver greater returns to its shareholders. Ahmad Kilani, Board Member and CEO of GULFNAV, stated: 'This signing marks a pivotal moment in GULFNAV's growth journey. This is more than an acquisition, it's a strategic integration that will allow us to unlock new opportunities in the energy logistics space. By combining our maritime capabilities with Brooge's cutting-edge infrastructure, we are well-positioned to deliver value to our customers, shareholders, and the UAE's broader energy ecosystem.' Next Steps Following the signing of the Sale and Purchase Agreement, both parties will work closely to fulfill the remaining conditions required to complete the transaction, including securing final regulatory approvals, satisfying all contractual and legal completion terms, and executing the necessary corporate actions. As part of this process, GULFNAV will implement a capital increase, issue new shares to Brooge Energy Limited, and initiate a structured capital raising initiative through the issuance of Mandatory Convertible Bonds (MCBs). Upon completion, the focus will shift to operational integration to ensure a smooth transition and to unlock synergies across both organizations. All final conditions of the deal are expected to be completed before the end of the third quarter of 2025, subject to customary closing conditions. Trussbridge Advisory (DIFC) Limited acted as exclusive financial advisor to GULFNAV on the transaction. Pinsent Masons LLP acted as the lead counsel, while Ibrahim & Partners advised on structuring and regulatory matters of the transaction. About Gulf Navigation Holding: Gulf Navigation Holding PJSC ('GULFNAV') is a fully integrated and synergized organization with a multifunctional business. It is the only maritime and shipping company listed in the Dubai Financial Market since February 2007 under the symbol 'GULFNAV'. The Company is headquartered in Dubai, with branch offices inside the ports of Fujairah and Khorfakkan, along with an overseas office in the Kingdom of Saudi Arabia. The Company has a fleet of chemical tankers, livestock transport vessels, well stimulation vessels, operation support vessels, marine services, and ship repair operations. As an ISO 9001:2015 certified company accredited by Bureau Veritas, GULFNAV is committed to adhering to the requirements of the international safety management code for the safe operations of vessels, pollution prevention and environmental control, including compliance with all the applicable international laws, regulations and requirements. GULFNAV constantly works to upgrade its operations and provide high-quality services to local and international markets. About Brooge Energy Limited: Brooge Energy Limited, ("Brooge") (NASDAQ: BROG) is a Cayman Islands-based infrastructure provider which is engaged in Clean Petroleum Products and Biofuels and Crude Oil storage and related services. Brooge conducts the business and operations through its subsidiary BPGIC FZE. BPGIC FZE is strategically located outside the Strait of Hormuz at the Port of Fujairah in the Emirate of Fujairah in the UAE. Its business differentiates itself from competitors by providing customers with fast order processing times, excellent customer service and high accuracy blending services with low product losses. For media inquiries, please contact: Nader Muqbel Director of Corporate Communications & Investor Relations Tel: +971 56 778 0799 E-mail:
