Latest news with #AhmadKilani
Arabian Post
11-06-2025
- Business
- Arabian Post
GulfNav Secures $871 Million Deal to Bolster Oil Storage Hub
Arabian Post Staff -Dubai Gulf Navigation Holding PJSC has signed a definitive agreement to acquire the assets and subsidiaries of Nasdaq‑listed Brooge Energy for AED 3.2 billion, a move set to significantly expand its midstream oil and gas capacity. The transaction spans a blend of cash, share issuance, and mandatory convertible bonds, with completion anticipated by the close of the third quarter of 2025, subject to regulatory and shareholder approvals. The bulk of the deal involves taking over Brooge Petroleum and Gas Investment Company FZE, its Phase III FZE entity, and BPGIC Phase 3 Limited—each operating advanced crude, fuel oil, and refined petroleum storage facilities in Fujairah. These strategically located assets will double GulfNav's existing infrastructure, reinforcing its footprint at a key UAE bunkering and storage hub. ADVERTISEMENT Under the structured settlement, GulfNav will allocate 358.8 million new shares at AED 1.25 each to Brooge Energy, enforceable with a 12‑month lock‑up period. It will also issue AED 2.336 billion in mandatory convertible bonds convertible at the same share price and restricted similarly. Existing shareholders have access to AED 500 million in MCBs at AED 1.10 per share, with major investors covering any unclaimed portion. Additionally, AED 460 million will be disbursed in cash. Chief Executive Ahmad Kilani described this acquisition as transformational, explaining that integrating Brooge's storage infrastructure with GulfNav's maritime services will 'unlock operational synergies, enhance storage capacity and drive long‑term value for shareholders.' Incoming facilities in Fujairah are expected to enhance logistical efficiency, lower costs, and broaden GulfNav's revenue mix. This move aligns with GulfNav's strategy to transition from a legacy maritime operator to a diversified energy‑logistics conglomerate. The firm's board was authorised in March 2025 to proceed with the asset acquisition, capital increase, and issue of MCBs, all in light of its shareholders' approval. Regulatory processes and amendments to the company's articles of association—particularly regarding foreign ownership—are now underway. Brooge Energy has previously attracted scrutiny. In December 2024, U.S. investors filed a fraud claim against auditor Ernst & Young, alleging that revenues were overstated by between 30% and 80% during 2018–2020. The firm reached a $5 million settlement with the U.S. Securities and Exchange Commission over irregular accounting practices. Despite these concerns, GulfNav maintains the deal offers strategic value, citing diligence and planned regulatory housekeeping prior to close. Analysts note the landmark nature of this deal; GulfNav's storage assets are poised to surge, positioning it as a key player in the region's rapidly evolving energy-logistics ecosystem. Fujairah's strategic location outside the Strait of Hormuz means its terminals are well placed to serve global crude oil logistics, with Brooge's high-tech blending capabilities offering an edge in operational efficiency. Transaction conditions encompass customary requirements: shareholder approvals, regulatory consents, debt settlements, and commercial registration. GulfNav expects to finalise the share and bond issuance in tandem with regulatory clearance, with the goal of closing by end‑Q3 2025. After completion, the Brooge Energy shareholders and bondholders will receive equity in GulfNav under lock‑up terms. Post-acquisition, GulfNav's board plan includes integrating Brooge's board representatives to ensure continuity and operational alignment throughout the transition. Integration is expected to elevate GulfNav's EBITDA margins and open fresh revenue streams via enhanced storage, blending, and bunkering services. Although GulfNav navigates complexities from Brooge's previous accounting controversies, analysts emphasise the strategic benefits—particularly the ability to offer complete maritime-to-storage and product blending services from a single platform. The expanded Fujairah facilities will allow GulfNav to capitalise on growing crude export flows, further supported by Abu Dhabi's energy growth ambitions. With conventional execution risk low, attention now shifts to securing regulatory and legal clearances, along with capital-raising for the MCB component. Successful completion will mark GulfNav's transformation into a fully integrated energy logistics powerhouse, ready to meet regional demand while delivering enhanced returns to investors.
Arabian Post
31-05-2025
- Business
- Arabian Post
GulfNav's $871M Deal Signals Strategic Shift in Energy Logistics
Dubai-listed Gulf Navigation Holding PJSC has secured shareholder approval for a AED 3.2 billion acquisition of Brooge Energy Ltd.'s assets, marking a significant expansion into the midstream oil and gas sector. The transaction, involving cash, newly issued shares, and mandatory convertible bonds , is expected to close in the second quarter of 2025, pending regulatory approvals. The acquisition encompasses Brooge Petroleum and Gas Investment Company FZE, Brooge Petroleum and Gas Investment Company Phase III FZE, and BPGIC Phase 3 Limited. These entities operate advanced storage facilities in Fujairah, a strategic oil storage and export hub. GulfNav plans to integrate these assets to enhance its storage and logistics capabilities, aligning with its long-term vision to become a dominant player in the energy sector. The deal's financial structure includes the issuance of 358,841,476 new shares to Brooge Energy at AED 1.25 per share, with a one-year lock-up period. Additionally, MCBs worth AED 2.336 billion will be issued to Brooge, convertible at the same price and subject to a similar lock-up period post-conversion. An extra AED 500 million in MCBs, priced at AED 1.10 per share, will be allocated to existing GulfNav shareholders, with major shareholders covering any unsubscribed bonds. A cash payment of AED 460 million completes the settlement. ADVERTISEMENT CEO Ahmad Kilani stated that the acquisition is expected to generate significant operational synergies, including cost savings from integrated logistics and increased storage capacity. Financially, the deal 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 320%. Brooge Energy, founded in 2013 and based in the Cayman Islands, operates through subsidiaries focused on clean petroleum products, biofuels, and crude oil storage. Its facilities in Fujairah are among the most technologically advanced in the sector, adhering to international standards. The company's strategic location outside the Strait of Hormuz positions it advantageously in global oil logistics. The acquisition aligns with GulfNav's commitment to sustainable growth and operational excellence. Post-acquisition, the company plans to expand its storage and logistics capabilities to meet the growing demand for midstream oil and gas services in the region. By leveraging Brooge's advanced infrastructure, GulfNav aims to improve operational efficiencies, diversify its service offerings, and unlock new revenue opportunities. Additionally, the company will continue to support the UAE's sustainability goals by exploring innovative solutions, such as alternative fuel storage and reduced carbon emissions. The transaction is subject to customary closing conditions and regulatory approvals. GulfNav's Board of Directors has been authorized to take all necessary actions to finalize the acquisition, including completing regulatory approvals, amending the Articles of Association, and overseeing capital increase procedures.
Arabian Post
12-05-2025
- Business
- Arabian Post
Ajman Bank Exits Gulf Navigation Amidst Major Acquisition Shift
Ajman Bank has divested its stake in Gulf Navigation Holding, concluding a series of direct share transactions valued at AED 173.4 million over the past month. Data from the Dubai Financial Market indicates that nine direct deals, each ranging between 2.6 million and 9 million shares, were executed since March 5. This move signifies the bank's complete exit from its investment in the Dubai-based shipping company. Previously, Ajman Bank held a 6.4% stake in Gulf Navigation as of 2024, which was reduced to 5.6% by January 2025. The bank's decision to divest aligns with its broader strategy to optimize its investment portfolio. In 2024, Ajman Bank reported a record profit before tax of AED 440 million, marking a significant turnaround from a net loss of AED 390 million in the previous year. This financial performance was supported by a total operating income of AED 1.5 billion and a net operating income of AED 736 million. Gulf Navigation, on the other hand, is advancing its strategic acquisition of Brooge Energy Limited. Shareholders approved the AED 3.2 billion deal on March 14, 2025. The acquisition includes Brooge's assets such as the Brooge Petroleum and Gas Investment Company , located in Fujairah, a key hub for oil storage and bunkering. The transaction is structured with a combination of cash payments, issuance of new shares, and mandatory convertible bonds . Specifically, Gulf Navigation will issue 358.84 million new shares to Brooge Energy at AED 1.25 per share, accompanied by MCBs valued at AED 2.33 billion, convertible at the same price. An additional AED 500 million in MCBs will be allocated exclusively to existing UAE-based shareholders, with a cash component of AED 460 million completing the transaction. The acquisition is expected to significantly enhance Gulf Navigation's operational capabilities and market position in the midstream oil and gas sector. See also Dubai Fountain to Undergo Five-Month Transformation Brooge Energy has faced scrutiny in the past, including a $5 million settlement with the U.S. Securities and Exchange Commission in 2023 over fraud charges related to revenue fabrication between 2018 and 2020. Despite these challenges, Gulf Navigation's leadership views the acquisition as a strategic move to strengthen its logistics and storage services. CEO Ahmad Kilani stated that the deal is projected to enhance the company's revenue and improve earnings before interest, tax, and depreciation over the coming years. The transaction is anticipated to be completed by the second quarter of 2025, pending regulatory approvals. Gulf Navigation's share capital will increase by 320% following the issuance of new shares and convertible bonds. This expansion reflects the company's commitment to sustainable growth and long-term value creation for its shareholders. Ajman Bank's exit from Gulf Navigation coincides with its strategic focus on strengthening its financial position. The bank's rights issue in 2024 was oversubscribed 7.4 times, raising AED 550 million and attracting significant interest from both international and local investors. This capital infusion is expected to support the bank's growth strategies and enhance its service offerings.
Arabian Business
14-03-2025
- Business
- Arabian Business
GULFNAV shareholders approve Brooge Energy asset buyout in AED3.3bn deal
Gulf Navigation Holding PJSC (GULFNAV), the DFM-listed maritime and shipping company, said its shareholders have approved the strategic acquisition of assets and companies owned by Brooge Energy Limited (BEL), a UAE-based midstream oil storage and service provider. The approval was granted at the company's General Assembly Meeting held on Thursday, March 13, it said. GULFNAV's strategic acquisition approval The acquisition includes Brooge Petroleum and Gas Investment Company FZE, Brooge Petroleum and Gas Investment Company Phase III FZE, and BPGIC Phase 3 Limited. The transaction is expected to significantly enhance GULFNAV's operational capabilities and market position, solidifying its presence in the midstream oil & gas and logistics sectors. GULFNAV said the acquisition will be settled through a combination of cash, newly issued shares, and Mandatory Convertible Bonds (MCBs). While the cash component of the transaction will involve a payment of AED460 million, the company will issue 358.84 million new shares to BEL at AED1.25 per share, with a one-year lock-up period. The company will also issue MCBs worth AED2.34 billion to BEL, convertible at AED1.25 per share, with a one-year lock-up period post-conversion. Besides, it will also issue MCBs worth AED500 million at AED1.10 per share exclusively allocated to existing GULFNAV shareholders. The acquisition aligns with GULFNAV's long-term vision to become a dominant player in the energy sector by expanding its storage and logistics capabilities, the company said. BEL's state-of-the-art infrastructure, which includes advanced facilities for the storage of fuel oil, crude oil, and petroleum products, will complement GULFNAV's existing operations, it said, adding that the integration is expected to drive operational efficiencies, enhance service offerings, and create substantial value for stakeholders. Ahmad Kilani, Board Member and CEO of GULFNAV, said the approval of the acquisition marks a transformational milestone for the company. 'This deal reinforces our commitment to sustainable growth, operational excellence, and long-term value creation for our shareholders. 'With this acquisition, we strengthen our position in the midstream sector, expand our service portfolio, and unlock new revenue opportunities,' he said. The Company's Board of Directors has been authorized to take all necessary actions to finalize the acquisition, including completing regulatory approvals, amending the Articles of Association, and overseeing capital increase procedures. The transaction is expected to be completed within the second quarter of this year, subject to regulatory approvals and customary closing conditions.
Zawya
14-03-2025
- Business
- Zawya
GULFNAV Shareholders approve strategic acquisition of Brooge Energy Limited's assets and companies for AED 3.2bln
Dubai, UAE: Gulf Navigation Holding PJSC ('GULFNAV'), the Dubai Financial Market listed maritime and shipping company, announced today that its shareholders have approved the strategic acquisition of assets and companies owned by Brooge Energy Limited ("BEL"). The approval was granted at the General Assembly Meeting held on March 13, 2025. This acquisition includes Brooge Petroleum and Gas Investment Company FZE, Brooge Petroleum and Gas Investment Company Phase III FZE, and BPGIC Phase 3 Limited. The transaction is expected to significantly enhance GULFNAV's operational capabilities and market position, solidifying its presence in the midstream oil & gas and logistics sectors. Key Highlights of the Approved Transaction: The acquisition will be settled through a combination of cash, newly issued shares, and Mandatory Convertible Bonds (MCBs). Issuance of 358,841,476 new shares to BEL at AED 1.25 per share, with a one-year lock-up period. Issuance of MCBs worth AED 2.336 billion to BEL, convertible at AED 1.25 per share, with a one-year lock-up period post-conversion. Issuance of MCBs worth AED 500 million at AED 1.10 per share, exclusively allocated to existing GULFNAV shareholders, with major shareholders subscribing to any remaining bonds not taken up by minority investors. These MCBs are to be converted into shares within three (3) months. A cash payment of AED 460 million as part of the transaction settlement. Strategic Significance of the Acquisition: The acquisition aligns with GULFNAV's long-term vision to become a dominant player in the energy sector by expanding its storage and logistics capabilities. BEL's state-of-the-art infrastructure, which includes advanced facilities for the storage of fuel oil, crude oil, and petroleum products, will complement GULFNAV's existing operations. This integration is expected to drive operational efficiencies, enhance service offerings, and create substantial value for stakeholders. Ahmad Kilani, Board Member and CEO of GULFNAV, commented: "The approval of this acquisition marks a transformational milestone for GULFNAV. This deal reinforces our commitment to sustainable growth, operational excellence, and long-term value creation for our shareholders. With this acquisition, we strengthen our position in the midstream sector, expand our service portfolio, and unlock new revenue opportunities. We are confident that the integration of Brooge's assets will enhance our competitive edge and deliver significant value to our stakeholders." Future Outlook: Post-acquisition, GULFNAV will focus on driving growth and operational synergies through the integration of Brooge's state-of-the-art infrastructure and expertise. The Company plans to expand its storage and logistics capabilities, enhancing its ability to serve the growing demand for midstream oil and gas services in the region. By leveraging Brooge's advanced facilities, GULFNAV aims to improve operational efficiencies, diversify its service offerings, and unlock new revenue opportunities. Additionally, the company will continue to support the UAE's sustainability goals by exploring innovative solutions, such as alternative fuel storage and reduced carbon emissions. These initiatives are expected to strengthen GULFNAV's competitive position and deliver long-term value to its shareholders. 'The acquisition is expected to generate significant operational synergies, including cost savings from integrated logistics and increased storage capacity. Financially, the deal 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 320%.' Kilani added. The Company's Board of Directors has been authorized to take all necessary actions to finalize the acquisition, including completing regulatory approvals, amending the Articles of Association, and overseeing capital increase procedures. The transaction is expected to be completed within the 2nd quarter of this year, subject to regulatory approvals and customary closing conditions. About Gulf Navigation Holding: Gulf Navigation Holding PJSC ('GULFNAV') is a fully integrated and synergized organization with a multifunctional business. It is the only maritime and shipping company listed in the Dubai Financial Market since February 2007 under the symbol 'GULFNAV'. The Company is headquartered in Dubai, with branch offices inside the ports of Fujairah and Khorfakkan, along with an overseas office in the Kingdom of Saudi Arabia. The Company has a fleet of chemical tankers, livestock transport vessels, well stimulation vessels, operation support vessels, marine services, and ship repair operations. As an ISO 9001:2015 certified company accredited by Bureau Veritas, GULFNAV is committed to adhering to the requirements of the international safety management code for the safe operations of vessels, pollution prevention and environmental control, including compliance with all the applicable international laws, regulations and requirements. GULFNAV constantly works to upgrade its operations and provide high-quality services to local and international markets. For media inquiries, please contact: Nader Muqbel Director of Corporate Communications & Investor Relations Tel: +971 56 778 0799 E-mail:
