Brooge Energy Limited (NASDAQ:BROG) saw its stock soar by 70% after announcing a conditional agreement to sell its subsidiaries, BPGIC FZE and BPGIC Phase III FZE, to Gulf Navigation Holding PJSC (GulfNav). This strategic move is expected to significantly reshape Brooge’s business trajectory.
Valued at roughly $884 million, the transaction includes around $125.3 million in cash, 358.8 million GulfNav ordinary shares, and mandatory convertible bonds. The deal remains subject to shareholder and regulatory approvals and is projected to close within five business days of meeting those conditions.
Brooge’s board expressed optimism about the deal’s potential: “We are pleased to be nearing the closing of our strategic transaction with GulfNav. After careful diligence by both parties, we have outlined the proposed terms and conditions the Board believes is in the best interest of ensuring long-term value creation for our shareholders.”
For GulfNav, the acquisition is a strategic expansion aimed at enhancing its energy logistics capabilities by incorporating BPGIC’s advanced petroleum storage infrastructure into its operations.
GulfNav CEO Ahmad Kilani emphasized the deal’s significance, stating, “This signing marks a pivotal moment in GULFNAV’s growth journey. This is more than an acquisition, it’s a strategic integration that will allow us to unlock new opportunities in the energy logistics space.”
Investors responded enthusiastically to the announcement, with Brooge shares posting sharp gains. The transaction is expected to close before the end of Q3 2025, with integration efforts focused on operational synergies between the two companies.