Dubai: 'Space42' - that's the new name for the entity emerging from the merger between Bayanat and Yahsat, the two heavyweights on Abu Dhabi's ADX.
A new board of directors has also been confirmed as the deal awaits regulator clearance. The plan is to create a new entity with a Dh15 billion plus market cap and with definite prospects to be the leading light in the Middle East and North Africa's ambitions for space.
On ADX, after yesterday's announcement of the deal, investors uniformly cheered the decision. To many, the news had come as a complete surprise, but they quickly identified with the points the companies made in opting for the deal. (The free float element is 21 per cent.)
The merger should become effective in H2-2024, at which point Yahsat will be delisted from ADX.
The Space42 gameplan
"With a strengthened financial position, enhanced AI-powered technological capabilities and a diversified product portfolio, the combined entity will be vertically integrated - and optimally positioned - to capture regional and international opportunities in geospatial and mobility solutions and satellite communications," according to a statement issued.
"It is expected to benefit from considerable revenue synergies and economies of scale that will best position the organization for innovation and profitable growth."
Yahsat, in particular, has a line on committed contracts from the UAE government, which come with a medium-term project period.
How the deal will play for shareholders
Bayanat shareholders will end up owning about 54 per cent and Yahsat's 46 per cent in Space42. "I am excited by the opportunity that an enlarged group can bring to our existing and potential customers globally," said Mansoor Al Mansoori, who will assume role of Chairman in the merged enterprise. (Al Mansoori is a member of Abu Dhabi Executive Council and Chairman of the Department of Health in Abu Dhabi.)
Dr. Bakheet Al Katheeri will be Vice-Chairman and Karim Sabbagh will join as Managing Director.
"I have known both businesses over the years, as they developed excellent capabilities covering geospatial and mobility solutions, satellite communications and business intelligence," said Sabbagh. "The proposed combination will yield an AI-powered platform for transformative technologies to enable space-based services with significant impact on societies and economies.”