The Board of Directors of Bayanat APILC and Al Yah Satellite Communications - Yahsat approved the merger today, Tuesday.
According to a joint statement by the two companies on the Abu Dhabi Securities Exchange, the proposed merger will contribute to creating a leading company in the field of space technology supported by artificial intelligence in the Middle East and North Africa region.
The statement indicated that the implied market value of the two companies after the merger will exceed 15 billion dirhams (more than $4 billion) based on the closing price of the two companies’ shares yesterday, and 21 percent of freely tradable shares.
He explained that the merger will contribute to the creation of one of the largest listed space technology companies in the world in terms of market value, which opens the way for broad possibilities for growth and integration at the global level.
The statement stressed that the new entity is able to benefit from regional and international opportunities in the field of geospatial solutions, mobile communications solutions, satellite communications, and information for the business sector.
He pointed out that the new entity has a strong financial position, advanced technological capabilities supported by artificial intelligence, and a diverse product portfolio, in addition to providing a platform for transformative technologies that provide services and solutions for the space sector that will have a tangible positive impact on the economy and society.
It is expected that the new company will benefit from achieving integration between the operations of the two merging parties and economies of scale, which will contribute to improving revenues and enhance its opportunities to achieve further growth and innovation.
The proposed deal will be implemented according to the share exchange mechanism with Bayanat Company, as it is the existing legal entity. After the issuance of the new shares of Bayanat Company, the ownership stake of its shareholders in the new company will reach about 54%, while the share of Yahsat shareholders will reach about 46%.
Bayanat and Yahsat were independently advised by Houlihan Lokey Bank and FTI Consulting, respectively.
The ownership shares of the new company will be divided into approximately 42 percent for the G42 Group, 29 percent for the Mubadala Investment Company, and 8 percent for the International Holding Company.
The statement stated that the merger process will be subject to a number of conditions, including obtaining the approval of government regulatory bodies and shareholder approval, and the two companies will continue to operate independently until the merger process is completed, which is expected to take place in the second half of 2024.
