Bayanat and Yahsat, meet Space42:Bayanat and Yahsat will name their new merged entity — which is set to become the first AI-powered space tech company in the MENA region — Space42, according to an ADX disclosure. The brand name was revealed a day after the two companies said that the merger, to be executed via a share-swap, will be valued at AED 15 bn (c. USD 4 bn) based on Monday’s closing share prices.

Proposed BoD: Post-merger, the entity will declare a new board of directors, with Mansoor Al Mansoori, chairman of the Abu Dhabi Department of Health, taking the reins as CEO, while Mubadala’s investment platforms CEO Dr. Bakheet Al Katheeri will assume the vice-chairman role and Karim Sabbagh will join as managing director.

Who will own what?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.

Once the merger is approved, it will “yield an AI-powered platform for transformative technologies to enable space-based services with significant impact on societies and economies,” Sabbagh said.

What’s next? While the companies await regulatory approval, Bayanat Managing Director Hasan Ahmed Alhosani and Yahsat CEO Ali Al Hashemi will continue to lead their respective companies. The merger is expected to come into effect in 2H 2024. Post-merger, Yahsat will delist from the ADX.

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