Gulf Navigation Holding, listed on the Dubai Financial Market, said the proposed acquisition would be financed through cash and new shares in Gulf Navigation.
The statement stated that the potential deal comes within Gulf Navigation Holding’s strategy to enhance growth and provide an integrated portfolio of logistical services related to oil, petrochemicals and gas materials.
Borouge, 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 company has a capacity of one million cubic meters of crude oil and oil derivatives, meaning the ability to store 6.3 million barrels of oil.
Gulf Navigation Company indicated that the acquisition process is still in its initial stages, as it will appoint legal and financial advisors to study the feasibility, evaluate the deal, and explore the best option to complete the deal between the two companies and obtain the necessary regulatory approvals, noting that the expected timetable for the acquisition has been set in the last quarter of this year.
Ahmed Al Kilani, Member of the Board of Directors and Managing Director of Gulf Navigation Holding Company, said: “This anticipated strategic step will represent a new stage in our growth journey, and while we are still at an early stage, we are confident that this expansion will contribute to increasing the diversity of our customer base and improving their experience through… Enhancing logistics services complementary to our business units.”
Al-Kilani continued: “The company is proceeding according to a roadmap centered around enhancing the value it provides to its shareholders, and is based on new partnerships locally and regionally, and exploring opportunities and prospects for growth and expansion through acquisition, merger, and entering new markets. Through this approach, we aim to provide a more flexible and comprehensive logistics services system.”
It is noteworthy that Borouge Company, which was founded in 2013, is today one of the most technologically advanced companies in the crude oil storage services sector, as the company’s facilities use advanced technology consistent with the best international standards. Borouge Company has strengthened its investments and presence in the Emirate of Fujairah thanks to its important strategic location globally, as it is an important station in oil storage. Expectations indicate that the oil storage sector in the Emirates will witness further development in light of the growing demand witnessed by the market. According to the statement.
Gulf Navigation provides its services to many major oil and gas companies in the Middle East through a fleet of first-class petrochemical tankers, in addition to support vessels and marine crew boats, complemented by a full range of shipping agency and ship management services.
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