Boards of Directors of Bayanat AI and Al Yah Satellite Communications (Yahsat) have unanimously voted to merge the two companies and create an AI-powered space technology company with a market capitalisation of over AED15 billion ($4.1 billion).
The implied market cap, based on the closing share prices of both companies on 18 December 2023, the last day of trading before the merger announcement, would make it one of the most valuable publicly listed space companies in the world.
Bayanat is a leading AI-powered geospatial solutions provider, while Yahsat is a leading global satellite operator. Both companies are headquartered in Abu Dhabi and listed on the Abu Dhabi Securities Exchange (ADX).
The Boards of Directors recommendation will need shareholders’ approval.
The merged company will be vertically integrated and optimally positioned to capture regional and international opportunities in geospatial and mobility solutions, satellite communications and business intelligence. It will have a strengthened financial position, enhanced AI-powered technological capabilities and a diversified product portfolio.
Share swap deal: Bayanat and Yahsat merger
The proposed transaction will be executed through a share swap with Bayanat as the remaining legal entity. Bayanat shareholders will own approximately 54 percent and Yahsat shareholders approximately 46 percent of the combined entity.
Group 42 (G42), Mubadala Investment Company and International Holding Company (IHC) will own approximately 42 percent, 29 percent and 8 percent respectively of the combined entity. G42 has majority shareholding in Bayanat, while Yahsat is a subsidiary of Mubadala.
Tareq Al Hosani, Chairman of Bayanat, commented: “This merger will unite two leading home-grown companies to create the MENA region’s first AI-powered space technology company. Leveraging our complementary assets, capabilities and ambitions will allow us to expand across the space value chain and offer an unparalleled service to our combined customer base.
“Together, we will leverage our synergies to reinforce our position as a key engine of growth and strategic solutions provider to the UAE government and its agencies, while expanding our reach to global customers.”
Musabbeh Al Kaabi, Chairman of Yahsat, added: “The merger is a compelling opportunity to amplify value creation for shareholders, utilising synergies and strategic consolidation to create a technologically advanced champion, further reinforcing the UAE’s position as a leader in the AI and space sectors.
“The new entity will benefit from accelerated growth potential as a player of scale with enhanced competitive advantage. This growth will be driven by our access to high-growth markets via cutting-edge technologies and an increased base of local and global customers, in addition to strong financials that allow us to pursue more ambitious growth opportunities.”
The merger is subject to a number of conditions, including regulatory approvals from the Securities and Commodities Authority (SCA) and other governmental authorities and shareholders representing 75 percent of the voting rights.
Both companies will continue to operate independently until the merger is effective, which is expected to happen in the second half of 2024.
Follow us on
