Bayanat, a provider of geospatial data products and services, and Al Yah Satellite Communications, known as Yahsat, are set to merge in a deal that will establish one of the world’s most valuable listed space companies. The combined entity, with a market capitalisation of Dh15 billion ($4.08 billion) based on closing share prices as of December 18, is poised to become the Middle East and North Africa (MENA) region’s inaugural AI-powered space technology company.
Bayanat’s chairman, Tareq Al Hosani, emphasised that the merger would bring together two prominent local companies to strengthen their position as a growth engine and strategic solutions provider to the UAE government while expanding global outreach. The proposed transaction, to be executed through a share swap, will maintain Bayanat as the legal entity, with shareholders holding 54 per cent and 46 per cent for Bayanat and Yahsat, respectively, in the merged business.
Bayanat, majority-owned by AI and cloud group G42, originated after the commercialisation of the UAE’s Military Survey Department, providing national-level mapping and geospatial services. Yahsat, a subsidiary of Mubadala Investment Company, offers satellite services in over 150 countries globally.
Expected to conclude in the second half of 2024, the merger is contingent on regulatory approvals from authorities such as the Securities and Commodities Authority and the Abu Dhabi Global Market Registration Authority. Until the merger’s completion, Bayanat and Yahsat will continue to operate independently.
The space sector, witnessing increased private sector participation, has experienced 8 per cent growth to $546 billion in 2022, with projections indicating a further 41 per cent expansion over the next five years, according to the Space Foundation. As the Arab world’s second-largest economy, the UAE boasts the region’s most substantial and diverse space sector, evident in initiatives such as a Dh3 billion ($820 million) fund launched last year to support the space program and develop radar satellites. Yahsat, recently reporting a profit in Q3, anticipates accelerated growth and enhanced competitiveness through the merger.
