Abu Dhabi’s Bayanat and Yahsat to merge to create $4.1bn space company

Two Abu Dhabi companies have decided to merge in a deal that will create one of the world’s most valuable listed space companies.

Mena

Bayanat, a geospatial data products and services provider, and Al Yah Satellite Communications, better known as Yahsat, will have a market capitalisation of Dh15 billion ($4.08 billion), based on the closing share prices of both businesses as of December 18.

“This merger will unite two leading home-grown companies to create the Mena region’s first AI-powered space technology company,” Bayanat chairman Tareq Al Hosani said on Tuesday.

“Together, we will leverage our key synergies to reinforce our position as a key engine of growth and strategic solutions provider to the UAE government and its agencies, while expanding our reach to global customers.”

The proposed transaction will be executed through a share swap, with Bayanat remaining as the legal entity, the companies said.

The shareholders of Bayanat and Yahsat will own 54 per cent and 46 per cent, respectively, or the merged business.

Bayanat, which is majority owned by AI and cloud group G42, was created after the commercialisation of the UAE’s Military Survey Department, a sector of the Armed Forces.

It provides national-level mapping and geospatial products and services for the public and private sectors in the Emirates.

Meanwhile, Yahsat, a subsidiary of Abu Dhabi’s sovereign investment arm Mubadala Investment Company, offers satellite services in more than 150 countries across Europe, the Middle East, Africa, South America, Asia and the Australasia region.

The merger, which is expected to take place in the second half of 2024, is subject to several conditions, including regulatory approvals from governmental authorities such as the Securities and Commodities Authority and the Abu Dhabi Global Market Registration Authority.

Bayanat and Yahsat will continue to operate independently until the merger is effective.

Competition in the space sector is heating up with more private players entering the industry.