Brooge Energy Gets Acquisition Offer From Dubai's Gulf Navigation, Shares Soar

Brooge Energy Limited BROG, a Cayman Islands-based infrastructure provider, is in the spotlight Wednesday premarket following a formal acquisition proposal from Gulf Navigation Holdings PJSC, a maritime and shipping giant listed on the Dubai Financial Market. 

The offer, which was received yesterday (October 3), encompasses a complete takeover of all assets and businesses of Brooge Energy.

BROG has yet to respond to the acquisition proposal from Gulf Navigation. There is no certainty that the company will accept the offer, it said. 

If the transaction does proceed, it will be contingent upon meeting standard closing conditions typical for deals of this type, including securing the required regulatory approvals.

Currently, Brooge Energy conducts its business and operations through its subsidiaries Brooge Renewable Energy (BRE), Brooge Petroleum and Gas Investment Company FZE (BPGIC), and Brooge Petroleum and Gas Investment Company Phase 3 FZE. BPGIC has strengthened its investments and presence in the Emirate of Fujairah thanks to its important strategic location globally.

The proposed acquisition is still in an early stage, as Gulf Navigation is in the process of conducting further due diligence.

If agreed by both parties, the transaction would target closing in Q4. 

Price Action: BROG shares are trading higher by 15.3% to $6.33 premarket on the last check Wednesday.

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