Aussie NewSat “Fire Sale” imminent
June 3, 2015
By Chris Forrester
Australia’s NewSat assets look likely to be sold within days to a foreign buyer. Australia’s Financial Review suggests that the assets are being examined by a number of potential buyers, but Malaysia’s Measat looks to be the front runner.
NewSat’s prime asset is a part-built satellite, Jabiru-1, but that is still at Lockheed Martin in an unfinished state and L-M would want cash to complete the build.
New York-based financial advisory company Peter J Solomon & Co is handling what the newspaper describes as a “fire sale” of NewSat’s assets. Money is also due to French rocket launch company Arianespace as well as specialist bankers Export-Import Bank and French lenders COFACE.
Other bidders talked about in the Australian press include Telstra, Singtel-Optus and Speedcast. However, these players are likely to only be interested in NewSat’s teleport and existing contracted business assets.
One report suggests that NewSat’s much-criticsed founder, Adrian Ballintine, is trying to put together a consortium to buy the assets.