Investing.com -- Brooge Energy Limited (NASDAQ: BROG ) shares surged 70% following the announcement of a conditional sale and purchase agreement for its subsidiaries BPGIC FZE and BPGIC Phase III FZE to Gulf Navigation Holding PJSC (GulfNav). The strategic transaction is poised to reshape the company’s future, creating a significant impact on its stock performance.

The deal, valued at approximately USD 884 million, is expected to deliver considerable value to Brooge Energy’s stakeholders. It includes a cash consideration of around USD 125.3 million and the issuance of 358,841,476 ordinary shares in GulfNav, alongside mandatory convertible bonds. The transaction is subject to customary conditions, including shareholder and regulatory approvals, and is anticipated to be finalized within five business days following the satisfaction of these conditions.

Brooge Energy’s board expressed confidence in the agreement, stating, "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."

The acquisition aligns with GulfNav’s long-term vision to expand its storage and logistics capabilities, leveraging BPGIC Group’s advanced infrastructure. This includes state-of-the-art facilities for the storage of various petroleum products, which will complement GulfNav’s existing operations and enhance its service offerings.

The transaction is also a significant leap for GulfNav in its ambition to become an integrated energy logistics leader. Ahmad Kilani, Board Member and CEO of GULFNAV, remarked on the deal’s importance: "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 reacted positively to the news, evidenced by the sharp rise in Brooge Energy’s stock price. As the companies work towards fulfilling the remaining conditions for the acquisition, the market will closely monitor the progress and potential impact on both Brooge Energy’s and GulfNav’s future operations and financial performance. Completion of the deal is expected before the end of the third quarter of 2025, with the transition focusing on operational integration and realizing synergies between the two organizations.

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