Abu Dhabi-based companies Bayanat and Al Yah Satellite Communications Company (Yahsat) have unveiled plans to merge, forming a colossal AI-powered space technology entity with a staggering market capitalization surpassing Dh15 billion.
This valuation is derived from the closing share prices of both firms on December 18, 2023, along with a 21 percent free float.
A Global Space Technology Leader:
By market capitalization, the combined entity is positioned to become one of the world’s most valuable publicly listed space firms.
The merger is anticipated to unlock substantial growth opportunities on regional and international fronts, particularly in geospatial and mobility solutions, satellite communications, and business intelligence.
Vision and Strategic Objectives:
Tareq Al Hosani, chairman of Bayanat, emphasized that the merger would establish the Middle East and North Africa (MENA) region’s premier AI-powered space technology enterprise.
The united companies aim to solidify their role as a pivotal growth engine and a strategic solutions provider for the UAE government while extending their global footprint.
Synergistic Advantages and Competitive Edge:
Musabbeh Al Kaabi, chairman of Yahsat, highlighted the merger’s potential to create amplified shareholder value through synergies and strategic consolidation.
The resultant entity benefits from accelerated growth opportunities, leveraging cutting-edge technologies and an expanded customer base, bolstering the UAE’s stature in the AI and space.
Shareholder Structure and Strategic Investors:
The proposed transaction involves a share swap, positioning Bayanat as the surviving legal entity.
Upon completion, Bayanat shareholders are slated to own around 54 percent, with Yahsat shareholders holding approximately 46 percent of the combined entity.
Notably, Group 42 (G42), Mubadala Investment Company (Mubadala), and International Holding Company (IHC) will possess approximately 42 percent, 29 percent, and 8 percent of the merged entity, respectively.
Independent Validation and Future Operations:
Both companies secured independent fairness opinions from Houlihan Lokey and FTI Capital Advisors. Until the merger becomes effective, anticipated in the latter half of 2024, Bayanat and Yahsat will continue to operate as separate entities.
The completion of the merger hinges on regulatory approvals from entities such as the Securities and Commodities Authority and the ADGM Registration Authority, as well as the consent of shareholders.
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