Gulf Nav shareholders approve $871mln Brooge acquisition
The company's share capital will increase by 320% following the transaction - which includes issuing 359 million new shares in favour of BEL as well as AED 2.3 billion in mandatory convertible bonds (MCBs).
The transaction also includes AED 460 million in cash as well as AED 500 million MCBs to current shareholders, prioritising minorities.
Under it, Gulf Nav will acquire BEL's oil storage assets and companies - Brooge Petroleum and Gas Investment Company (BPGIC) FZE, Brooge Petroleum and Gas Investment Company Phase III FZE, and BPGIC Phase 3 Limited.
Earlier, shareholders had expressed discontent as Gulf Nav's proposed conversion price for new bonds and shares is lower than one proposed by an alternative valuation from UAE financial regulator the Securities and Commodities Authority (SCA), meaning their holdings will be more diluted.
But they agreed the company's own valuation, which was recommended by the board.
The company will integrate Fujairah-based Brooge infrastructure to expand storage and logistics capabilities to serve demand for midstream oil and gas services in the region, as well as explore alternative fuel storage.
(Writing by Imogen Lillywhite; editing by Brinda Darasha)
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