Shipping firm hopes to pay off its debts

If a deal comes through, Dubai’s Gulf Navigation expects to get a muchneeded cash injection from a new investor that will help pay off part of its debts. In addition, the investor could bring an additional Dh120 million that would aid the shipping company’s current and future expansion plans.

It was on Tuesday that Gulf Navigation first spoke of a strategic investor having shown interest. Yesterday, the company outlined the immediate and medium-term benefits that would accompany the deal going through.

On Tuesday, the Gulf Navigation stock closed 14.85 per cent higher at Dh0.6 as shareholders took in the news of possible investment help on the horizon. It has also set off a guessing game as to where the new investor could be from, with mentions being made about an one from Abu Dhabi or Saudi Arabia.

The deal, if all works to plan, could be done in the next three to four months. For now, an outside consultant will look at the proposed deal to see the pros and cons.

Only an in-principle agreement has been struck with the investor, whose identity has not been revealed.