Satellite operator Eutelsat has announced that it has completed its acquisition of its Mexican peer Satmex having obtained all required government and regulatory approvals.
The transaction was first announced on 31 July with Eutelsat agreeing to buy…
Satellite operator Eutelsat has announced that it has completed its acquisition of its Mexican peer Satmex having obtained all required government and regulatory approvals.
The transaction was first announced on 31 July with Eutelsat agreeing to buy Satmex for a total consideration of US$1.142bn. The deal valued Satmex’s equity at US$831m, while its net debt stood at around US$311m.
The purchase price represents an acquisition multiple of 9.7 times Satmex’s annual EBITDA, for the period ending 31 March 2013.
To fund the acquisition, Eutelsat raised €930m (US$1.276bn) through the issuance of senior unsecured notes in mid-December. The notes carry a coupon of 2.625%, priced at 99.289 to yield 2.753%, and are due January 2020.
Commenting on the completion of the transaction, Michel de Rosen, Eutelsat’s chairman and CEO, said: “With the acquisition of Satmex, Eutelsat is significantly up scaling activity in the Americas to complement our strong presence in fast-growing markets.
“Satmex’s strategic orbital slots, which will be expanded in 2015 with two further high-performance satellites, bring Eutelsat a robust platform from which to access significant opportunities in this region. They will be further complemented by the Eutelsat 65 West A satellite that we will launch in advance of the 2016 Olympic Games in Rio de Janeiro to serve video and broadband markets in Latin America.”
Satmex currently operates three satellites at 113W (Satmex 6), 114.9W (Satmex 5) and 116.8W (Satmex 8) that cover 90% of the population of the Americas. The Satmex 7 and 9 satellites are scheduled for launch in 2015 and will more than double this total in-orbit capacity.
Perella Weinberg was financial adviser to Eutelsat on the transaction, while Banca IMI, Credit Agricole, Mitsubishi UFJ and Societe Generale were lead joint-bookrunners on the bond offering.
