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Abu Dhabi companies Al Yah Satellite Communications Company P.J.S.C. and Bayanat AI PLC have proposed a merger to create an AI-powered space technology champion with an implied market capitalisation of 15 billion dirhams ($4 billion).
The two ADX-listed entities said in bourse statements on Tuesday that their respective boards of directors have voted to recommend their merger to shareholders.
Bayanat, which is backed by Abu Dhabi-based AI development holding company Group 42, provides AI-powered geospatial solutions across sectors such as government services, environment, etc. Yahsat, a global satellite operator, is partly owned by Abu Dhabi state investor Mubadala Investment Co.
The proposed transaction will be executed through a share swap with Bayanat as the remaining legal entity. Bayanat and Yahsat shareholders will own 54% and 46% respectively of the new combined entity, with Mubadala, and institutions like G42 and International Holding Company (IHC) owning approximately 29%, 42%, and 8% respectively.
The combined entity will create a vertically integrated leading provider of AI-powered geospatial and mobility solutions, satellite communications and business intelligence, the statement said.
The merger is expected to take place in the second half of 2024, until which time Bayanat and Yahsat will continue to operate independently.
(Writing by Brinda Darasha; editing by Bindu Rai)
