Tech

Merger to create astronomic UAE space company

December 19, 2023, 9:53 AM

The UAE launched the Rashid Rover a year ago, the country's first mission to the moon

Bayanat and Yahsat propose deal
Merger subject to approval
First Mena AI-powered space firm

Two Abu Dhabi technology companies are planning a merger to create a $4 billion space organisation for the region.

The boards of Bayanat and Yahsat have voted to recommend a merger to shareholders, a filing to the Abu Dhabi Stock Exchange on Tuesday revealed.

The proposal will create a company with an implied market capitalisation of more than $4 billion, based on closing share prices as of Monday.

This would make it one of the most valuable publicly listed space companies in the world, the filing said.

Bayanat is a provider of geographic data and analytics while Yahsat, a subsidiary of the Mubadala Investment Company, offers “satellite solutions”.

The transaction would be executed through a share swap, with Bayanat as the remaining legal entity.

Bayanat shareholders will own 54 percent and Yahsat shareholders 46 percent of the new company.

Tareq Al Hosani, chairman of Bayanat, said the merger will create the Mena region’s first AI-powered space technology company.

The deal, which is expected to take place in the second half of 2024, is subject to a number of conditions including regulatory approvals from governmental authorities and the approval of shareholders representing 75 percent of the voting rights.

Last month the Crown Princes of Abu Dhabi and Dubai launched the execution phase of the UAE’s Sirb satellite programme, which aims to commercialise satellites and the data they generate.

The UAE launched the Rashid Rover, the first Arab-built lunar spacecraft, a year ago.