In a groundbreaking move, Abu Dhabi-based companies Al Yah Satellite Communications Company P.J.S.C. and Bayanat AI PLC have unveiled plans for a strategic merger aimed at establishing a formidable AI-powered space technology giant. The ambitious endeavor is projected to yield an impressive implied market capitalization of 15 billion dirhams, equivalent to $4 billion.
Both entities, listed on the Abu Dhabi Securities Exchange (ADX), jointly announced on Tuesday that their respective boards of directors have unanimously agreed to recommend the merger to their shareholders. Bayanat AI PLC, bolstered by the support of the prominent Abu Dhabi-based AI development holding company Group 42, specializes in delivering AI-powered geospatial solutions across diverse sectors, including government services and environmental applications. On the other hand, Al Yah Satellite Communications Company, commonly known as Yahsat, stands as a global satellite operator and is partially owned by the influential Abu Dhabi state investor Mubadala Investment Co.
The proposed merger will be executed through a strategic share swap, with Bayanat emerging as the surviving legal entity. Post-merger, shareholders of Bayanat and Yahsat will hold 54% and 46%, respectively, of the newly consolidated entity. Key stakeholders, including Mubadala, Group 42, and International Holding Company (IHC), are anticipated to possess approximately 29%, 42%, and 8% stakes in the combined entity, reflecting a robust representation of major industry players.
The resultant conglomerate is poised to emerge as a vertically integrated industry leader, offering a comprehensive suite of AI-powered geospatial and mobility solutions, satellite communications, and business intelligence services. The integration of expertise from both entities is expected to usher in a new era of innovation and efficiency in the space technology sector.
The merger timeline is set for the second half of 2024, during which Bayanat and Yahsat will continue to operate independently. This strategic move not only reflects the collaborative vision of the two entities but also signals a significant development in the global space technology landscape, positioning the new combined entity as a powerhouse in AI-driven solutions for geospatial and satellite communications.
