Loral Space & Comms still for sale

Loral Space & Communications, which owns a majority stake in Canada-based satellite operator Telesat, is still up for sale despite the expiration of the ‘sale’ deadline by co-investor in Telesat, PSP Investments.

However, any sale also has to cope with an on-going legal dispute between its former subsidiary Space Systems/Loral (SS/L) and satellite broadband operator ViaSat. This litigation and its costs are ring-fenced as far as any sale is concerned but the complications might be enough to dissuade potential buyers. ViaSat is suing SS/L and alleging that SS/L used certain key patents of VaiSat’s when building other, rival satellites. Loral says it will appeal any negative decision at a cost of up to $800,000 a month.

Loral Space & Comms says that it has an acceptable – but unnamed – offer but that the negotiations were complex and that more time was needed. Additionally, any sale would also lead to a restructuring of the agreement between Loral and PSP Investments (one of Canada’s largest pension investment managers) and the holdings in Telesat.

Posted by on Aug 8 2014. Filed under Articles, Business, DTH/Satellite, M&A.

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