Intelsat and Eutelsat want Canada’s Telesat
December 14, 2010
Global satellite provider Intelsat is in the lead to buy Canada’s Telesat. According to reports, Intelsat is now the front runner in the bidding battle to buy the Canadian satellite operator, and is seen to be ahead in the process thanks to a complex restructuring which will therefore comply with US anti-monopoly regulations.
Eutelsat is reportedly also very keen to pick up the Canadian company which, if successful, would give it a strong presence over North America. Echostar is another contender.
However, Intelsat is seen as being in a good position to wrap up the deal and which values the Canadian operator of the Anik series of satellites as being some US$6.5 billion. Intelsat will refinance its debt and bring in new equity funding in order to close the deal. Fresh funding will come from Sovereign Wealth Funds in Singapore and China as well as the Middle East, thus bringing a wider ownership structure to Intelsat, and thus make the deal more palatable to US regulators.