Dubai-based maritime and shipping company Gulf Navigation (Gulf Nav) is on the cusp of finalizing its acquisition of Brooge Petroleum and Gas Investment Company (BPGIC), a subsidiary of Brooge Energy. The deal, expected to close within the next six to eight weeks, will significantly bolster Gulf Nav's presence in the regional oil storage sector.
The acquisition was initially announced in October 2023, with BPGIC's vast storage capacity at the Fujairah Oil Terminal – a staggering 6. 3 million barrels – proving a key attraction for Gulf Nav. The company sees the deal as a strategic move to expand its service offerings and capitalize on the growing demand for oil storage solutions in the region.
Financing for the acquisition will be a multifaceted approach. Gulf Nav will utilize a combination of cash, mandatory convertible bonds (MCBs), and a fresh issuance of shares. This structure offers flexibility and allows Gulf Nav to manage its financial exposure effectively.
The company's board of directors recently approved the appointment of BHM Capital CEO Abdel Hadi Al Sa'adi to fill the vacancy left by Mazen Jaber Al Dahmani's resignation. Al Sa'adi brings a wealth of experience in the financial sector, and his expertise is expected to be invaluable during this crucial acquisition phase.
News of the impending acquisition has been met with positive reactions from industry analysts. The combined entity, with a projected market capitalization exceeding AED 20 billion ($5. 44 billion), is expected to be a major player in the regional maritime and energy landscape. The deal is also seen as a testament to the continued growth and dynamism of the UAE's oil and gas sector.
While the official closing remains subject to obtaining all necessary approvals, Gulf Nav appears confident in a swift and successful conclusion. The acquisition marks a significant step forward for the company, solidifying its position as a key player in the regional maritime and energy sectors.