UAE’s Bayanat and Yahsat agree potential Dhs15bn merger

Abu Dhabi-based geo data and analytics firm Bayanat has agreed to merge with Al Yah Satellite Communications (Yahsat), creating an AI-powered space technology firm with a market capitalisation of more than Dhs15bn ($4bn) as of December 18, 2023.

The two entities said their respective boards have voted to recommend to shareholders a tie-up of the two Abu Dhabi-listed entities, through a share swap deal.

Bayanat will remain the legal entity following the merger and the new entity will create “a leading provider of AI-powered geospatial and mobility solutions, satellite communications and business intelligence.

The geo data and analytics firm’s shareholders will own approximately 54 per cent and Yahsat shareholders approximately 46 per cent of the combined entity.

G42 Group, state investor Mubadala and Abu Dhabi holding firm International Holding Company will own approximately 42 per cent, 29 per cent and 8 per cent of the combined business, respectively.

“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,” said Tareq Al Hosani, chairman of Bayanat.

Al Hosani said the merged entity will leverage Bayanat and Yahsat’s key synergies to reinforce its position as a key engine of growth and strategic solutions provider to the UAE Government and its agencies.

The consolidation is subject to regulatory approvals from governmental authorities including the Securities and Commodities Authority and the ADGM Registration Authority, and the approval of shareholders.

Bayanat and Yahsat will continue to operate independently until the merger is effective, which is expected to take place in the second half of 2024.

Bayanat, Yahsat bolster UAE space programme

Earlier this year, Bayanat and Yahsat signed an agreement to develop an in-country space programme.

The two entities’ strategic partnership was aimed at establishing and operating a strategic earth observation partnership within the UAE Government, which includes Synthetic Aperture Radar and optical imagery satellite capabilities.

Meanwhile, Satcom giant Yahsat’s government services arm, Yahsat Government Solutions, was authorised by the government to provide satellite capacity and managed services for 17 years.

The mandate, which is valued at Dhs18.7bn combines related operations, maintenance and technology management services of ground segment satellite systems and terminals currently provided under a separate contract.

Yahsat reported a 3 per cent increase in nine-month revenues to Dhs1.2bn ($323m) while its net income more than doubled normalised net income was in line versus the prior year period at Dhs274m ($75m).

Read: Yahsat receives Dhs18.7bn govt mandate for satellite related services