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The Board of Gulf Navigation, the Dubai-based shipping group, has approved key strategic terms related to the acquisition of Brooge Energy, which operates oil, fuel oil and refined products storage facilities in Fujairah, taking the deal an important step closer to conclusion. The decision progresses the company’s plan to develop an integrated portfolio of logistics services related to oil, gas and petrochemical products.
Brooge has a capacity of around 1 million m3 of crude oil and oil derivatives, enabling it to store 6.3 million barrels of oil. The company aims to double its storage capacity in the next few years.
At its recent meeting the Gulf Navigation Board approved the auditors’ report and the audited financial statements for 2023 of the Brooge companies to be acquired, in addition to a report that includes the justification for the acquisition. The Board also agreed the structure and payment mechanism, which includes a cash payment, the issue of mandatory convertible bonds and new shares. The Board further approved the basic terms for issuing mandatory convertible bonds to Brooge, which will be transferred later to the ultimate beneficial owners before being converted into shares in the capital of the company. In addition, the Board approved a capital increase of approximately AED 448.5 million, which represents the value of the number of shares to be issued in favour of Brooge as part of the acquisition settlement.
Gulf Navigation says the acquisition of Brooge is expected to enhance its competitive position in the market and increase its operational capabilities. Additionally, the acquisition will lead to the diversification of revenue sources and strengthen relationships with key strategic partners in the energy sector.
