Bayanat and Yahsat Board of Directors have unanimously voted for a merger of the two Abu Dhabi-headquartered and ADX-listed entities to form a AI-powered space technology company in the MENA region with an implied market capitalisation of more than AED15 billion (over USD 4 billion), based on both entities’ closing share prices as at 18 December 2023, the last day of trading prior to announcement of the merger.
This would make the new company one of the most valuable publicly listed space companies in the world by market capitalisation, with additional potential for significant global growth and synergies.
The combined entity will be vertically integrated and optimally positioned to capture regional and international opportunities in geospatial and mobility solutions, satellite communications and business intelligence. With a strengthened financial position, enhanced AI-powered technological capabilities and a diversified product portfolio, the combination will also establish a platform for transformative technologies to enable space-based services with significant impact on societies and economies.
It is expected to benefit from considerable revenue synergies and economies of scale that will best position the organisation for innovation and profitable growth.
The proposed transaction will be executed through a share swap with Bayanat as the remaining legal entity. Bayanat shareholders will own approximately 54% and Yahsat shareholders approximately 46% of the combined entity. Bayanat and Yahsat have each, in line with international best practice, obtained independent fairness opinions from Houlihan Lokey and FTI Capital Advisors respectively. Group 42 (G42), Mubadala Investment Company (Mubadala) and International Holding Company (IHC) will own approximately 42%, 29% and 8% of the combined entity respectively.
