Dubai: The Dubai based shipping services company Gulf Navigation could be roping in a strategic investor, which, if the deal happens, could mean much needed new funds coming in. Gulf Navigation has been buffeted by losses in the recent past and had been working on a turnaround plan.
To date, this had been restructuring its debts, controlling expenses, and signing longer tenure contracts with key clients. But if the new investor comes in, that could well be the game-changer. (On DFM, the stock has got a 1.52 per cent boost after the first 30 minutes and trading at Dh0.533.)
A non-binding MoU has been signed with a ‘potential investor’, even though the company did not disclose the identity. It is not known at this stage as to how much the investor would pick up as stake or the likely level of investment - if the deal gets sealed.
A consulting firm will be appointed to study the feasibility and evaluate the company’s assets,” Gulf Navigation said in a statement. “The two parties will follow all laws and regulations by the SCA and the Dubai Financial Market with regard to the objectives of the MoU and take necessary approvals in this regard.”
What will matter is how soon a deal can be struck, if the findings by the independent entity prove favourable. Gulf Navigation sailed through some tough times during the Covid crisis, and was struck by extreme misfortune after losing one of its vessels at sea.
The latest nine-month results show the company - whose stock is at a 52-week high of Dh0.53 - making marginal improvements, more so after the capital restructure. Now, it awaits that new investor.