SES has won the auction to acquire the ProtoStar 2 satellite, for a price of US$185m. The purchase was made with an all-cash offer through SES’ Satellite Leasing unit, which is based out of the Isle of Man.
ProtoStar 2 will now be added to the SES World…
SES has won the auction to acquire the ProtoStar 2 satellite, for a price of US$185m. The purchase was made with an all-cash offer through SES’ Satellite Leasing unit, which is based out of the Isle of Man.
ProtoStar 2 will now be added to the SES World Skies division. It is currently operating at 107.7E and has an existing anchor customer in the form of Indonesian DTH provider Indovision.
It was not confirmed as to whether the spacecraft will stay at 107.7E or be moved to SES’ nearby hotspot at 108.2E, where it would be just as capable at serving Indovision.
SES outbid Intelsat and AsiaSat during the auction. It set the bar for the price at US$185m in the week prior to the auction, and drafted an agreement with ProtoStar that would have ensured SES receive US$6.3m if any other bidder came in with a higher offer.
However, the size of the bid and the strong position in terms of frequency rights it held in that vicinity ensured that SES did not face concerted competition from the other interested parties. AsiaSat was the next highest bidder. UBS Securities advised ProtoStar on the sale.
ProtoStar 2 was only launched in May 2009, and has a full fifteen-year lifespan remaining. It carries 22 Ku-band and ten S-Band transponders.
“SES World Skies already has a thriving video neighbourhood in the immediate vicinity of Protostar 2 as well as appropriate orbital rights that allow for expansion,” said Rob Bednarek, president and CEO of SES World Skies. “By acquiring a healthy satellite in orbit we are fast-tracking future revenue growth and providing our customers with incremental capacity while reinforcing our commitment to the continued development of the Asian direct-to-home (DTH) market”.
It now remains to be seen what the future holds for ProtoStar, which is still in Chapter 11 bankruptcy protection. Given its situation, the US$185m it received for ProtoStar 2 and the US$210m paid by Intelsat for ProtoStar-1 represent favourable prices.
When ProtoStar entered into Chapter 11 protection in July it was estimated to have listed assets and liabilities of US$100-500m.
Although the sale of its assets has left it bereft of any kind of satellite business, ProtoStar should now at least be better placed to satisfy its creditors.
