Bayanat, Yahsat proposed merger to go to vote in April

Image: WAM

Bayanat AI and Al Yah Satellite Communications Company (Yahsat) have issued circulars summoning their respective general assembly meetings (GAMs) to be convened concurrently on April 25.

The focal point of these gatherings will be the pivotal vote on the proposed merger between the Abu Dhabi-based entities, both listed on the Abu Dhabi Securities Exchange (ADX).

This call for unified action follows the unanimous recommendation from both companies’ boards of directors, announced on December 19, urging shareholders to endorse the merger, laying the foundation for a strong partnership.

Bayanat-Yahsat merger to form SPACE42

If approved, the fusion of Bayanat and Yahsat will create SPACE42, an AI-powered pioneer in space technology poised to dominate the MENA region.

With combined revenues tallying Dhs2.8bn and net income of Dhs637m, as disclosed in the companies’ FY 2023 reports, SPACE42 is primed to deliver substantial value across all operational domains, from upstream to midstream and downstream solutions.

Embracing this transformative union, the merged entity eyes agile adaptation to evolving market dynamics, seeking to seize regional and global prospects in geospatial and mobility solutions, satellite communications, sustainability endeavours, and business intelligence.

SPACE42 aims to capitalise on cross-selling and up-selling opportunities, building customer relationships through an extended distribution network, and harnessing an advanced technology platform with innovative products and solutions.

Moreover, the merged entity stands to gain from enhanced visibility in revenue and cash flow generation, primarily driven by a significant portion of government-related contracts.

However, the merger’s fruition is contingent upon meeting various conditions, including regulatory approvals from entities such as the Securities and Commodities Authority, the ADGM Registration Authority, and multiple international regulatory bodies.

Approval from shareholders representing 75 per cent of the voting rights present at the GAMs of Bayanat and Yahsat is imperative.