Echostar has not abandoned its attempt to take over Satmex, according to reports in Mexico.
Juan Molinar Horcasitas, the Mexican Communications Minister, gave a news briefing during which he is quoted as saying that an accord has been reached between…
Echostar has not abandoned its attempt to take over Satmex, according to reports in Mexico.
Juan Molinar Horcasitas, the Mexican Communications Minister, gave a news briefing during which he is quoted as saying that an accord has been reached between Satmex and EchoStar which involves the participation of all the shareholders, but that said accord is still contingent on the fulfilment of a series of conditions that have been negotiated.
The price for Satmex still appears to be the sticking point, and it is believed that EchoStar refuses to increase its original offer of US$274m in cash combined with the repayment of US$107m of Satmex’s debt.
EchoStar’s previous approach collapsed in March after Satmex bondholders blocked the sale. At that time, EchoStar seemingly walked away from the deal for good, choosing instead to expand its Mexican presence through a new capacity deal with SES.
The Satmex bondholders have since displayed their willingness to support Satmex through a waiver on certain covenants that have allowed it to order a new satellite from Space Systems Loral.
