The company said, in a disclosure to the Dubai Financial Market, that this new expansion step comes as a continuation of the company’s strategy to enhance growth and provide an integrated portfolio of logistical services related to petroleum, petrochemical and gas materials, noting that the board of directors decided to call for a general assembly meeting to obtain shareholders’ approval for these decisions, according to what was reported by the Emirates News Agency “WAM”.
The Board of Directors took Gulf Navigation Company Several key decisions related to the acquisition of companies owned by Borouge Energy Limited, as the Board approved the auditors’ report and the audited financial statements for 2023 for the companies to be acquired, in addition to the report that includes the justifications for the acquisition and specifies the payment structure and mechanism, which includes a cash payment, issuance of mandatory convertible bonds, and issuance of new shares.
The Board also approved the basic terms of the issuance of mandatory convertible bonds in favor of Borouge Energy Limited, which will subsequently be transferred to the beneficial owners before being converted into shares in the capital of Gulf Navigation Company. The main term sheet and conditions were also approved and signed, as well as the presentation on the details of the acquisition and capital increase deal, which will be presented to shareholders at the General Assembly.
In addition, the capital increase of approximately AED 448.5 million was approved, which represents the number of shares that will be issued to Borouge Energy Limited as part of the settlement of the acquisition deal, which will be covered through 3 sources: cash consideration, new shares worth approximately AED 448.5 million, and mandatory convertible bonds that will be issued to Borouge Energy.
This acquisition is expected to strengthen Gulf Navigation’s position in the market and increase its operational and competitive capabilities. In addition, the acquisition will diversify revenue sources and strengthen relationships with key strategic partners in the energy sector, enabling the company to benefit from future growth opportunities in local and regional markets. Through this strategic expansion, Gulf Navigation will be able to improve its financial performance and increase returns on investment for the benefit of its shareholders.
