GulfNav Board Approves Capital Increase for Brooge Acquisition

GulfNav's board has authorized a significant capital increase aimed at facilitating the acquisition of Brooge Energy Limited, a move expected to enhance the company's operational capabilities and market position. This decision includes a capital boost of AED 448.5 million (approximately USD 122 million), which will be covered through cash payments, new shares, and the issuance of mandatory convertible bonds.

The board's approval follows a thorough review of Brooge’s audited financial statements and an assessment of the acquisition's rationale. Brooge, established in 2013, is recognized for its state-of-the-art crude oil storage facilities in Fujairah, a strategic hub for oil export and storage. This acquisition is poised to diversify GulfNav's revenue streams and strengthen its partnerships within the energy sector.

As part of the acquisition process, GulfNav plans to present the detailed terms to its shareholders at the upcoming General Assembly. This presentation will seek approval from shareholders for the proposed capital increase and the execution of the necessary agreements. The board has also finalized the terms for the mandatory convertible bonds to be issued, which are designed to be converted into equity stakes for Brooge's shareholders, aligning their interests with those of GulfNav.

The acquisition of Brooge is part of GulfNav’s strategic initiative to solidify its presence in the energy sector, enhancing its competitiveness in the market. By integrating Brooge’s advanced technological capabilities and extensive network, GulfNav anticipates improved financial performance and a robust return on investment for its stakeholders.