Energy News Beat
Dubai shipping firm Gulf Navigation (GulfNav) has been given the go-ahead by its shareholders to acquire the assets held by crude storage provider Brooge Energy.
The takeover plan, announced in October 2023, covers $125m in cash payment, the issuance of about 359m new shares to Brooge worth $122m, and $626m in mandatory convertible bonds (MCBs). The transaction also includes $136m MCBs to current shareholders.
The company’s share capital will increase by 320% following the transaction under which GulfNav will acquire Brooge Petroleum and Gas Investment Company (BPGIC) FZE, Brooge Petroleum and Gas Investment Company Phase III FZE, and BPGIC Phase 3 Limited.
“The transaction is expected to significantly enhance Gulf Navigation’s operational capabilities and market position, solidifying its presence in the midstream oil and gas and logistics sectors,” the company said in a statement.
Established in 2003 and listed in the Dubai Financial Market since February 2007, GulfNav has a diversified fleet of chemical tankers, livestock carriers, well stimulation vessels, and offshore support vessels.
Post-acquisition, the company will integrate Fujairah-based Brooge infrastructure to expand storage and logistics capabilities to serve demand in the region and explore alternative fuel storage.
The post Gulf Navigation set to close Brooge Energy deal appeared first on Energy News Beat.
