Dubai-based Gulf Navigation Holding PJSC (Gulfnav) maritime and shipping company has submitted a formal proposal to fully acquire Brooge Petroleum and Gas Investment Company (BPGIC) from Brooge Energy Limited (BEL), a leading oil refinery and storage company listed on Nasdaq.

Gulfnav stated that this proposed acquisition will be funded through a combination of cash and shares in Gulfnav.

According to the company, the proposed acquisition is still at an early stage, as Gulfnav is in the process of conducting further due diligence on BPGIC, and its legal and financial advisors continue to evaluate the deal.

If the proposed transaction is accomplished, it would be subject to customary closing conditions and regulatory approvals. The Dubai firm is optimistic that the deal can be closed by the fourth quarter of 2023, although until now the proposed transaction is under evaluation.

Brooge Petroleum and Gas Investment Company (BPGIC), located in the Emirate of Fujairah, is a leading company in the storage of crude oil products, fuel oil, refined fuel products and crude oil extraction. The firm has strengthened its investments and presence in the Emirate of Fujairah being an important hub in oil storage and exporting.

Expectations indicate that the oil storage sector in the UAE will witness further development in light of the growing demand witnessed by the market.

On the other hand Gulfnav, which supports some of the Middle East’s largest oil and gas companies, owns a fleet of Type 2 chemical tankers, offshore support vessels and an IRS-class Well Stimulation Vessel.

Ahmed Kilani, board member and managing director of Gulfnav, said: “This anticipated strategic step represents a new stage in our growth journey; and 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, and is based on new partnerships locally and regionally, exploring opportunities and prospects for growth and expansion through acquisitions and mergers as well as entering new markets. With this approach, we aim to provide a more flexible and comprehensive logistics services hub for our clients,” Kilani added.