Finance

GULFNAV Completes $136 Million MCB Offering

Gulf Navigation Holding (GULFNAV), a leading maritime and shipping company listed on the Dubai Financial Market (DFM) on Monday announced the successful completion of its $136.13 million Mandatory Convertible Bond (MCB) offering, with total subscriptions exceeding $141.57 million from eligible shareholders who subscribed through the lead receiving Bank – Emirates NBD.

The bonds were offered at $0.30 per bond and will be converted into shares on or before 29 October 2025, the company said in a disclosure with DFM in the morning.

The offering represents a key component of GULFNAV’s $870 million strategic acquisition of Brooge Energy Limited’s assets and companies (Brooge), and directly supports its vision to expand into the regional energy infrastructure sector.

The money raised through the MCBs will fund the cash component of the acquisition, while the remaining consideration will be settled through the issuance of approximately 359 million new shares to Brooge at $0.34 per share (subject to a one-year lock-up), and an additional $630 million in MCBs issued to Brooge, convertible at $0.34 per share, also with a one-year lock-up post-conversion, the company said.

The company also confirmed that the second tranche, originally reserved for major shareholders, will not be opened as the full amount was raised in the first tranche. The subscription process is now officially closed, and no further applications will be accepted.

Strengthens GULFNAV

H H Sheikh Theyab bin Tahnoon bin Mohammad Al Nahyan, Chairman of Gulf Navigation Holding, said that this offering marks a significant step toward executing the acquisition of Brooge Energy’s assets.

“It reflects the strong confidence our shareholders have in the company’s vision to grow in the energy infrastructure space. We will continue to focus on completing the next phases of the transaction and strengthening GULFNAV’s role as an integrated logistics solutions provider in the region,” he explained.

He also thanked all shareholders who participated in the offering for their continued support and trust and appreciated his company’s partners, advisors, and regulatory stakeholders for their critical role in the success of this issuance.

“We remain fully committed to executing the acquisition as planned, integrating the new assets seamlessly, and delivering long-term operational and financial value to our shareholders,” he added.

Global Business Magazine

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