Satellites

Intelsat to buy PanAmsat for $3.2 billion

MUMBAI: A wave of consolidation is sweeping the satellite sector. Intelsat Ltd. plans to buy PanAmSat Holding Corporation in an all-cash deal for $3.2 billion to create a premier satellite company.

 

 

The enlarged company will have a combined fleet of 53 satellites with an annual revenue of more than $1.9 billion. Serving customers in more than 220 countries and teritories, it will be a leader in the digital delivery of video content, the transmission of corporate data and the provisioning of government communications solutions, Intelsat said in a release.

The new company will offer customers expanded coverage with additional back-up satellites, support fiber networks, and enhanced operational capabilities for cable TV programmes, broadcasters, businesses and governments.

 

 

Says Intelsat CEO David McGlade, "The combination of Intelsat and PanAmSat creates an industry leader with the ability to provide competitive communications and video services to consumers and businesses. The two companies are complementary in customer, geographic and product focus. Together, we will continue providing the highest level of service to existing customers while growing new business in rapidly expanding communications markets."

McGlade will continue to serve as CEO while Joseph Wright, currently PanAmSat CEO, is expected to become chairman of the board upon completion of the transaction.

"Today, PanAmSat offers its video, data and government customers a highly reliable level of service that only a technically advanced and financially strong satellite operator can provide," said Mr. Wright. "Now, we will combine the best from both companies and bring a professional business approach to the new enterprise to benefit our customers, employees and shareholders. This is a 'win-win' for both companies, and a terrific outcome for all of PanAmSat's shareholders, who will receive $25 per share in cash -- a significant premium over the recent stock price and nearly a 40% premium over the IPO price of about six months ago. In addition, our shareholders will continue to receive dividends, at the current annual rate or higher, until we close the transaction."

PanAmSat has a fleet of 25 satelllites and is a leading global provider of video, broadcasting and network distribution and delivery services. It transmits 1,991 television channels worldwide. Intelsat's historic strength, on the other hand, has been in providing core telephony and advanced data services to developing and underserved regions around the world. "We will leverage our combined intellectual, material and people assets to continue the high-quality service Intelsat and PanAmSat customers have come to expect," said McGlade.

Under the merger agreement signed by the two companies, Intelsat will acquire all outstanding common shares of PanAmSat. Additionally, Intelsat will either refinance or assume approximately $3.2 billion in debt of PanAmSat Holding Corporation and its subsidiaries. Intelsat has received financing commitments for the full amount of the purchase price from a group of financial institutions led by Deutsche Bank Securities Inc, Citigroup Global Markets Inc, Credit Suisse First Boston LLC and Lehman Brothers Inc.

The merger requires approval from US antitrust regulators and the Federal Communications Commission. The companies expect to close the transaction in approximately six to 12 months.

The satellite industry has been witness to a series of merger activities over the last three years. PanAmSat was bought last year by an investor group of private equity firms. In 2001, SES Astra bought GE Americom for $5 billion, to form SES Global.

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/01/10/PSLV%20satellites_1.jpg?itok=Yw-BT7At
ISRO eyes 100th satellite on 12 Jan; GSAT-11 launch in April

NEW DELHI: The Indian Space Research Organisation (ISRO) will launch its 100th satellite along with 30 others, including those from other countries, in a single mission on 12 January 2018 from Sriharikota It will be a milestone event in the country's space history even as communications satellite...

Satellites Satellite Launches
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/20/CABSAT-Content-Congress-2_0.jpg?itok=YcvSfKXr
Middle eastern audiences crave premium Arabic content: CABSAT 2018

MUMBAI: Demand for high quality Arabic content in the region has increased by almost 40% between 2011-2016, while western drama’s share of viewing decreased by an average of 55%, creating opportunities for regional producers to dominate the airwaves and secure their share of the market. According...

Satellites Satellite Operators
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/14/joe.jpg?itok=Wa1kLKeq
CASBAA lauds India; calls for more broadcast, satellite reforms

NEW DELHI: Asian pay TV industry organisation CASBAA, while applauding the Indian government for ease of doing business, exhorted policy makers to further streamline norms relating to the broadcast and satellite industries as it led to procedural delays impacting business.

Satellites Satellite Operators
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/14/Manoj%20Sinha1.jpg?itok=e_vWZFkE
Govt assures ease in licensing norms to TV channels, satellite operators

NEW DELHI: The Ministry of Communications (MoC) yesterday, while allaying concerns of the broadcast and satcom industries, assured that the government would further ease norms for doing business in India and that processes were underway for implementation soon to do away with multiple permissions...

Satellites Satellite Operators
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/11/21/rocket.jpg?itok=svJ2aIUI
ISRO to double annual satellite launch

NEW DELHI: The Indian Space Research Organisation (ISRO) plans to increase its satellite capacity by upping launches from next year to keep pace with demands from users and is also releasing request for proposals (RFP) for 30 satellites, top Indian government officials said.

Satellites Satellite Launches
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/09/04/teleport.jpg?itok=-BS19KKl
Intelsat signs distribution contract with Indian teleport operator

MUMBAI: Intelsat S.A., an operator of the globalised network and leader in integrated satellite communications, and LAMHAS, a teleport operator in India, have announced a multi-year agreement for satellite services supporting media distribution in India via the Intelsat 20 satellite.

Satellites Teleports
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/08/31/Satellite1_0.jpg?itok=rcdME4E7
Private sector enters satellite building with 'IRNSS replacement' launch today

MUMBAI: India's success in space exploration has been growing tremendously. One of the seven satellites in the constellation, as three rubidium atomic clocks on board had stopped functioning, the IRNSS- 1H satellite, weighing 1,425kg, will be launched from the second launch pad of the Satish...

Satellites Satellite Launches
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/08/16/Barrie_Woolston-Graham_Warren.jpg?itok=_QGtMB9i
AsiaSat 5 & Eurovision to deliver Taipei event in 4K & HD from 19 Aug

MUMBAI: Eurovision Media Services, in collaboration with its long-term satellite partner, Asia Satellite Telecommunications Company Limited (AsiaSat), will use AsiaSat 5 to deliver the Taipei 2017 Universiade across the Asia Pacific.

Satellites Satellite Operators
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/08/03/url.jpg?itok=lFHP9hx2
15 operational sats for communication, 26 under development

NEW DELHI: Fifteen of the 42 currently operational satellites are being utilised to meet the requirements of the communication industry, the minister of state in the department of space Jitendra Singh has said. Singh told the Parliament that the operational satellites in orbit comprise 18 earth...

Satellites Satellite Operators

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories