Brooge Energy Limited (BROG) to Divest Two Storage Units in $884M Gulf Navigation Deal

Brooge Energy Limited (NASDAQ:BROG) announced a definitive agreement to sell its core subsidiaries, BPGIC FZE and BPGIC Phase III FZE, to Gulf Navigation Holding PJSC. Valued at approximately $884 million, the deal indicates a significant change in the company’s operational focus in a highly evolving energy logistics environment.

As per the terms of the agreement, the transaction includes a mix of cash, newly issued Gulf Navigation shares, and mandatory convertible bonds. The latter accounts for close to 72% of the total consideration and signals Gulf Navigation’s intent to expand its storage alongside its transport ecosystem.

In addition to amendments to Gulf Navigation’s foreign ownership restrictions, the deal’s completion is also affected by the regulatory approvals and bondholder consents. Both parties anticipate closure within three months. As the deal progresses, further updates on shareholder distributions and regulatory filings are expected.

The facilities being sold by the company are located at the Port of Fujairah. As such, they offer significant access to key maritime routes, thus potentially providing an uplift to Gulf Navigation’s existing fleet operations. Gulf Navigation expects the new purchase to expand its service offerings. For Brooge Energy Limited (NASDAQ:BROG), the aim is to streamline its capital structure as well as resolve legacy liabilities tied to BPGIC Holdings Limited.

Brooge Energy Limited (NASDAQ:BROG)’s divestiture comes after a week of extraordinary market performance, where the company’s stock price went up by nearly 140%. Supported by strong insider ownership of close to 84% and notable institutional transactions amounting to 11%, the stock has surged by approximately 275% over the past year.

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