Dubai-based maritime and shipping company, Gulf Navigation Holding (GulfNav), has informed the Dubai Financial Market that it has submitted a formal proposal to fully acquire Brooge Petroleum and Gas Investment Company (BPGIC) from Brooge Energy Limited, a leading oil refinery and storage company that is listed on NASDAQ.
The acquisition is part of GulfNav’s strategy to pursue growth and provide an integrated portfolio of logistical services related to oil, gas and petrochemical products. The proposed acquisition will be funded through a combination of cash and shares in GulfNav.
The process is still at an early stage. GulfNav is conducting further due diligence on BPGIC, and its legal and financial advisors continue to evaluate the deal. The transaction, if it moves forward, would be subject to customary closing conditions and obtaining necessary regulatory approvals. It is expected to close by the fourth quarter of this year.
Located in Fujairah, BPGIC is a leading company in the storage of crude oil products, fuel oil, refined fuel products and crude oil extraction. It has a capacity of one million cubic meters of crude oil and oil derivatives, enabling the company to store 6.3 million barrels of oil.
GulfNav’s strategic roadmap for growth
Ahmed Kilani, Board Member and Managing Director of GulfNav, said: “This anticipated strategic step represents a new stage in our growth journey. While we are still at an early stage, we believe this expansion would contribute to further broadening our customer base and improving their experience by enhancing the logistics services that complement our business units.”
“GulfNav is proceeding according to a strategic road map centered around enhancing the value it provides to its shareholders. We are exploring opportunities and prospects for growth and expansion through acquisitions and mergers as well as entering new markets.”
Founded in 2013, BPGIC is now one of the most technologically advanced companies in the crude oil storage services sector. Expectations are that the oil storage sector in the UAE will witness further growth in light of the growing demand witnessed by the market.
GulfNav supports some of the Middle East’s largest oil and gas companies with a fleet of tankers, offshore support vessels and crew boats, which is complemented by the full spectrum of ship management and agency services. It works with some of the world’s largest petrochemical companies and independent trading houses, specialising in the transportation of crude oil and chemical products.
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