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<p>Bayanat AI PLC and Al Yah Satellite Communications Company P.J.S.C., both listed on the Abu Dhabi Securities Exchange (ADX), have jointly announced a proposed merger that would result in the creation of a dominant force in the AI-powered space technology sector within the Middle East and North Africa (MENA) region.</p>
<h2 class="wp-block-heading" id="unanimous-board-approval-signals-milestone-merger">Unanimous board approval signals milestone merger</h2>
<p>The Boards of Directors of Bayanat AI and Yahsat have unanimously recommended a merger to their respective shareholders. The proposed merger aims to consolidate the strengths of both entities, creating an AI-powered space technology champion with an implied market capitalization exceeding AED15 billion. This strategic move positions the merged entity as one of the world’s most valuable publicly listed space companies by market capitalization.</p>
<p>The combined entity will be uniquely positioned to capture regional and international opportunities in geospatial and mobility solutions, satellite communications, and business intelligence. The merger is expected to yield significant global growth, leveraging enhanced AI-powered technological capabilities and a diversified product portfolio. With an implied market capitalization of over AED15 billion, the merger is poised to bring about considerable revenue synergies and economies of scale, fostering innovation and profitable growth.</p>
<h2 class="wp-block-heading" id="share-swap-structure-and-shareholder-landscape">Share swap structure and shareholder landscape</h2>
<p>The proposed transaction will be executed through a share swap, with Bayanat as the remaining legal entity. Bayanat shareholders are expected to own approximately 54%, while Yahsat shareholders will hold approximately 46% of the combined entity. Key stakeholders, including Group 42 (G42), Mubadala Investment Company (Mubadala), and International Holding Company (IHC), will own approximately 42%, 29%, and 8% of the combined entity, respectively. Independent fairness opinions from Houlihan Lokey and FTI Capital Advisors have been obtained, aligning with international best practices.</p>
<h2 class="wp-block-heading" id="statements-from-leadership">Statements from leadership</h2>
<p>H.E. Tareq Al Hosani, Chairman of Bayanat, expressed enthusiasm about the merger, emphasizing the collaboration’s potential to position the newly formed entity as a pivotal engine of growth and strategic solutions provider to the UAE government and its agencies. Musabbeh Al Kaabi, Chairman of Yahsat, highlighted the merger as a compelling opportunity to amplify value creation, solidifying the UAE’s leadership in the AI and space sectors.</p>
<p>The merger is contingent upon several conditions, including regulatory approvals from governmental authorities such as the Securities and Commodities Authority and the ADGM Registration Authority. Shareholder approval, representing 75% of the voting rights, is required at a quorate general assembly meeting of each company. The timeline for the merger’s completion is set for the second half of 2024.</p>
<h2 class="wp-block-heading" id="a-transformative-leap-forward">A transformative leap forward</h2>
<p>The proposed merger of Bayanat AI and Yahsat marks a transformative leap forward in the MENA region’s AI-powered space technology landscape. By leveraging synergies, the combined entity is poised to make significant strides in geospatial and mobility solutions, satellite communications, and business intelligence. The merger aligns with the UAE’s vision of becoming a global leader in technology and innovation, setting the stage for a powerful player in the rapidly evolving space industry.</p>

The merger of Bayanat AI to Create MENA’s Leading AI-Powered Space Technology Company

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