Loral Space & Communications today announced the 3.25 billion acquisition of Telesat Canada by Loral and the Canadian-run Public Sector Pension Investment Board (PSP Investments) has been completed.
“Loral has transformed its regional fixed satellite services business into a 64 percent interest in the fourth largest FSS operator in the world,” said Michael Targoff, chief executive officer of Loral Space & Communications. “Loral’s international satellite services, combined with Telesat’s large North American presence, will offer customers a broad array of global satellite based video and data services.
Loral and PSP Investments acquired 100 percent of the stock of Telesat Canada from BCE for 3.25 billion (CAD) and the assumption of CAD 160 million of Telesat debt. PSP Investments is a Canadian crown corporation established in September 1999 by Parliament by the Public Sector Pension Investment Board Act.
Loral and PSP Investments will hold a 64 percent and 36 percent economic interest, respectively, in the new company. Consistent with Canadian law, Loral’s total voting equity will be 33.3 percent, with PSP Investments and other Canadian investors having 66.7 percent. Effective November 1st, 2007, Loral’s 64 percent economic interest in Telesat Canada will be reflected under equity income in affiliates.
The Public Sector Pension Investment Board Loral designs and manufactures satellites for commercial and government applications through its Space Systems/Loral subsidiary.
Created in 1969, Telesat launched the world’s first commercial geostationary satellite in 1972. Their newest, Anik F3, provides broadcasting and telecommunications throughout North America and carries a Ka-band payload to supplement services now being carried on Anik F2, which also carries Wild Blue’s 2-way internet service.
The top tier of satellite manufacturers worldwide, reports the San Francisco Chronicle, include Loral, Lockheed Martin, Boeing and Orbital Sciences. Two European firms, Alcatel Alenia and EADS Astrium, round out the top tier, says Marco Caceres, a senior space analyst for the Teal Group in Fairfax, Va.
Figures from the Satellite Industry Association show that satellite manufacturing has had a bumpy ride, with worldwide sales ranging from $11.5 billion in 2000 to $7.8 billion in 2005, the most recent year for which data are available. But sales for big satellites has seen a significant uptick, according to news reports.
Loral does not launch rockets but instead contracts with one of a handful of commercial firms such as Arianespace, a European consortium, or Sea Launch, an international consortium managed by Boeing.
Meanwhile, the Odyssey Launch Platform and the Sea Launch Commander have departed Long Beach, for the launch of the Thuraya-3 satellite. Liftoff is scheduled for November 13. Thuraya is NOT a dual-use surveillence satellite.
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