Telesat to merge with long-time majority owner Loral to form a new publicly-traded company

by | Nov 24, 2020 | Finance, Seradata News

Telesat Canada and majority shareholder Loral Space & Communications have declared their intention to merge and form a new Canadian company, temporarily named New Telesat. The announcement, on 24 November, outlined the planned ownership of New Telesat and its publicly traded status. The company will be listed on the NASDAQ exchange, like its precursor Loral.

Details of this transaction have had to be negotiated between Telesat Canada, Loral, and another Telesat Canada shareholder PSP Investments (Canadian Public Sector Pension Fund) and MHR Fund Management (which along with associates, owns a majority of Loral shares). Under the current plans, ownership stakes in New Telesat will be as follows: PSP Investments 36.7 per cent, MHR Funds 36.6 per cent, other Loral shareholders 26.1 per cent and Telesat Canada management 0.7 per cent.

Telesat owns a 17-strong satellite fleet (16 GEO and one LEO unit) providing global satellite coverage. On 31 December 2019, Telesat reported a sales backlog worth approximately US$2.5 billion. Loral also owns 56 per cent of XTAR LLC, a joint venture between Loral and Hisdesat. XTAR owns and operates an X-band military communications satellite positioned at 29 degrees East.

Completion of this endeavour is planned for the second or third quarter of 2021. This date is, however, subject to approval from both Canadian and American authorities, alongside approval from Loral’s non-MHR Funds affiliated shareholders.

Comment by Matthew Wilson: A significant pull-factor in the decision for Telesat to go public in this way likely relates to capital raising opportunities – specifically, raising cash to spend on its long-heralded LEO constellation. In an earnings call in October, the company made announcements concerning the award of contracts to constellation manufacturers and launch providers by the end of 2020.

Followers of the space industry may be feeling a sense of déjà vu. There has been much anticipation concerning Telesat’s constellation plans for the past four years.

About Seradata

Seradata produce the renowned SpaceTrak Launch & Satellite Database. Trusted by 100 of the world’s leading Space organisations, SpaceTrak is a fully queryable database used for market analysis, failure/risk assessment, spectrum analysis and space situational awareness (SSA).

For more information go to www.seradata.com/spacetrak

Related Articles

SSLV failure cause: Violent second stage separation triggered chain of events which prevented SSLV final stage burn to stable orbit

The failure investigation set up by the Indian Space Research Organisation (ISRO) into the launch failure of the maiden flight Read more

South Korea confirms shift of two missions from Russian launchers; Kompsat 6 goes to Arianespace and CAS500-2 goes back to international market

The South Korean vice-minister for Science, Oh Tae-seog, announced on 1 February 2023 that they had selected an Arianespace Vega Read more

SpaceX launches another batch of Starlinks plus ION-SCV9 delivery spacecraft testing separation system

A Falcon 9v1.2FT Block 5 was launched from the Vandenberg Space Force base in California at 1615 GMT on 31 Read more

US sanctions SPACETY for supplying radar imagery to Russian Wagner Group in Ukraine

Just as Ukraine's military campaign has been supported by US commercial spacecraft operating firms — with SpaceX and Maxar providing Read more

Tianwen 1 mission’s Zhurong-1 Mars rover may have expired in its sleep

SpaceNews reports (quoting the South China Morning Post) that the Zhurong 1 Mars rover as part of the Tianwen 1 Read more

Tom Cruise may have saved cinema industry with Top Gun-Maverick but he has even higher movie plans with space station studio module now ordered

While action film actor Tom Cruise has his detractors, you cannot say he is not successful. Recently starring in the Read more

China deploys 14 satellites on Long March-2D rocket

The Chinese sent 14 new satellites into orbit on a Long March-2D/2 (CZ-2D/2) rocket at 0314 GMT on 15 January. Read more

Falcon Heavy launches USSF-67 two satellite payload on way to GEO with its two boosters landed for future launches (Corrected)

A SpaceX Falcon Heavy Block 5 (px) rocket successfully lifted off from Kennedy Space Center, Florida, USA at 2256 GMT Read more

Categories

Archives