Gulf Navigation Holding PJSC (Gulfnav), a DFM-listed maritime and shipping company, has announced board decisions regarding the acquisition of assets from Brooge Energy Limited, a Nasdaq-listed company specialising in crude oil, fuel oil and refined fuel storage.
The board approved strategic terms for the acquisition and a capital increase, which will be presented to shareholders at the General Assembly pending approval from the Securities and Commodities Authority.
Fujairah-headquartered Brooge has a storage capacity of one million cubic meters for crude oil and derivatives, equating to 6.3 million barrels. It plans to double this capacity in the coming years. Founded in 2013, Brooge is known for its technologically advanced storage facilities that adhere to international standards. It has solidified its position in Fujairah as a significant oil storage and export hub.
Key decisions made by Gulfnav’s board include approval of the auditors’ report and the 2023 audited financial statements for the target companies, along with a report justifying the acquisition. The payment mechanism will involve cash payments, the issuance of mandatory convertible bonds, and new shares.
The board also approved the issuance terms for mandatory convertible bonds to Brooge, which will later convert into Gulfnav shares. A capital increase of Dh448.5 million was also approved, which will cover the shares issued to Brooge as part of the acquisition, funded by cash, new shares and convertible bonds.
A General Assembly meeting will be called to seek shareholder approval for these decisions, contingent on approval from the Securities and Commodities Authority. This acquisition aims to strengthen Gulfnav’s market position, enhance operational capabilities, diversify revenue streams and foster relationships with key partners in the energy sector, positioning the company for future growth in local and regional markets.
