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.
