Gulf Navigation Holding PJSC, the Dubai Financial Market-listed maritime and shipping company, announced the successful completion of its AED 500 million mandatory convertible bond offering, with subscription proceeds exceeding AED 520 million from eligible shareholders who subscribed through the receiving bank, Emirates NBD. The bonds were offered at a price of AED 1.10 per bond and are to be converted into shares on or before October 29, 2025.
This offering is a key component of the AED 3.2 billion strategic acquisition of Borouge Energy Limited (“Borouge”), further strengthening the company’s vision to expand into the region’s energy infrastructure sector. The AED 500 million proceeds from the bonds will be allocated to finance the cash portion of the transaction. The other two components will be funded through the issuance of approximately 359 million new shares to Borouge at a price of AED 1.25 per share, with a one-year lock-up period, and the issuance of AED 2.3 billion mandatory convertible bonds to Borouge, which will convert into shares at the same price and also with a one-year lock-up period after conversion.
His Highness Sheikh Theyab bin Tahnoon bin Mohammed Al Nahyan, Chairman of Gulf Navigation Holding, said: "This offering represents a significant step in the implementation of the acquisition deal and reflects shareholders' confidence in the company's vision to expand into the energy infrastructure sector. We will continue to focus on completing the remaining phases of the deal, which will strengthen Gulf Navigation's position as an integrated provider of logistics solutions in the region."
His Highness added: "On behalf of the Board of Directors, I extend my sincere thanks to all shareholders who participated in the offering for their continued support and strong confidence. I also express my appreciation to the partners, advisors, and regulatory authorities who contributed to the success of this offering. We are committed to proceeding with the acquisition transaction according to the planned timeline, working to integrate the new assets smoothly, and achieving maximum operational efficiency and sustainable value for shareholders." The company confirmed that the subscription window for the second tranche, designated for major shareholders, will not be opened, as the full amount raised from the first tranche has been collected. Thus, the subscription process has officially closed, and no further applications will be accepted.
