Debuting the first AI-powered space-tech company: The boards of AI-company Bayanat and satellite comms company Yahsat agreed on an all-share merger creating what would be the first AI-powered space technology company in the MENA region, according to ADX disclosures by Bayanat and Yahsat.

The new merged entity will have a market cap of AED 15 bn (c.USD 4 bn), based on the closing share prices of both companies the day before the merger announcement on Monday, as well as the issuance of 21% freefloat shares by Bayanat, according to a press release on the new entity’s website.

More details on the transaction: The merger will be carried out via a share swap, designating Bayanat as the surviving legal entity. Post-transaction, Bayanat’s shareholders will hold around 54% of the new company, with Yahsat’s shareholders claiming 46%.

Shareholder structure:G42, the owner and majority shareholder of Bayanat, will retain a 42% ownership stake in the new entity. Abu Dhabi state fund Mubadala, of which Yahsat is a subsidiary, will hold 29%. The International Holding Company (IHC), which has a 15% stake in Bayanat, will retain an 8% share in the new entity.

The merger is currently pending regulatory approvals from the Securities and Commodities Authority and the ADGM Registration Authority, as well as the approval of shareholders, who have 75% of the voting rights at the general assembly meeting of both companies.

Advisors: Houlihan Lokey counseled Bayanat with FTI Capital Advisors offering advisory support to Yahsat.

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