Abu Dhabi-listed companies Bayanat and Yahsat announced to merge; creating an AI-powered space technology giant

The merger of the Abu Dhabi-listed businesses Bayanat and Al Yah Satellite Communications Company (Yahsat), which will create a massive space technology company driven by AI and valued at over Dh15 billion, was announced on Tuesday.

The market capitalization is determined based on the closing share prices of both organisations on December 18, 2023, and a 21% free float. With the potential for considerable worldwide development and synergies, the combined company would rank among the most valuable publicly listed space enterprises in the world based on market capitalization.

The merged company wants to take advantage of possibilities in corporate intelligence, satellite communications, and geospatial and mobility solutions on a regional and global scale.

A share swap will be used to carry out the planned transaction, with Bayanat maintaining the remaining legal company. Around 54% of the merged company will belong to Bayanat stockholders, and around 46% to Yahsat shareholders. Roughly 42%, 29%, and 8% of the merged company will be owned by Group 42 (G42), Mubadala Investment Company (Mubadala), and International Holding Company (IHC).

Houlihan Lokey and FTI Capital Advisors provided independent fairness assessments to both entities. The autonomous operations of Bayanat and Yahsat will persist until the merger becomes official, which is anticipated to occur in the latter part of 2024.