DFM-listed GulfNav signed off on a AED 3.2 bn transaction to buy the storage business of Nasdaq-listed Brooge Energy, according to a disclosure (pdf). The signing wraps up a transaction structure shareholders had approved back in March, and hands GulfNav ownership of three Brooge subsidiaries that run oil storage infrastructure in Fujairah — namely Brooge Petroleum and Gas Investment Company, Brooge Petroleum and Gas Investment Company Phase III, and BPGIC Phase 3.

What they said: “The acquisition is expected to generate significant operational synergies, including cost savings from integrated logistics and increased storage capacity. Financially, the transaction is projected to enhance GulfNav’s revenue streams and improve EBITDA margins over the next few years. The issuance of new shares and MCBs will increase Gulfnav’s share capital by approximately 220%,” GulfNav CEO Ahmad Kilani said in a separate statement.

What’s next: Both sides still need to tick off regulatory approvals, along with a few legal steps.. The firm aims to close the transaction before the end of 3Q 2025.

How they’re paying for it:

  • Some 358.8 mn new shares will be issued to Brooge at AED 1.25 each, with a one-year lock-up;
  • AED 2.3 bn in convertible bonds issues to Brooge, also at AED 1.25 per share;
  • AED 500 mn in bonds offered to GulfNav shareholders at a slightly lower AED 1.10;
  • as well as AED 460 mn in-cash.

ADVISORS – Gulf Navigation appointed Trussbridge Advisory (DIFC) as its exclusive financial advisor, and Pinsent Masons as its lead counsel. Ibrahim & Partners Law Firm provided legal advice on the transaction structuring and related regulatory aspects.

Market reax: Gulf Navigation’s shares were up 8.97% to settle at AED 5.95 per share at the end of the day.

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