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Dubai: Shareholders at geospatial and data analytics firm Bayanat AI Plc and satellite services operator Al Yah Satellite Communications Company each approved the recommended merger of the two Abu Dhabi-headquartered and ADX-listed entities.

In General Assembly Meetings (GAMs) held simultaneously on April 25, respective shareholders of each entity voted on the proposed merger of separate units under Abu Dhabi’s G42 and Mubadala. The latest approval follows respective Boards of Directors unanimously voting to recommend to shareholders the merger of the two companies.

The proposed merger of Bayanat and Yahsat will create SPACE42, an AI-powered space technology champion in the MENA region. The merger would create one of the most valuable publicly listed space companies in the world with additional potential for significant global growth and synergies.

With a combined revenue of Dh2.8 billion and net income of Dh637 million based on Bayanat and Yahsat’s released results for 2023, SPACE42 is well positioned to bring significant value to all stakeholders, and is expected to benefit from significant cost and revenue synergies.

The enlarged entity will also benefit from high visibility on revenue and cash flow generation through a high proportion of government-related contracts.

The merger is subject to a number of conditions, including regulatory approvals from governmental authorities including the Securities and Commodities Authority, the ADGM Registration Authority and various international regulatory authorities, aside from the approval of shareholders of each of Bayanat and Yahsat.

Both companies will continue to operate independently until the merger is effective.

- With inputs from WAM