Japanese satellite operator Sky Perfect JSAT has said it will undertake an absorption-type merger of its wholly-owned subsidiary Opticast, which delivers content through optical fibre networks.
The deal has already received approval from the board…
Japanese satellite operator Sky Perfect JSAT has said it will undertake an absorption-type merger of its wholly-owned subsidiary Opticast, which delivers content through optical fibre networks.
The deal has already received approval from the board of directors and is scheduled to be effective on 1 April 2014. Approval of the respective general shareholders’ meetings will not be sought.
With this merger, the operator is hoping to boost sales of Sky PerfectTV services, including a premium service managed by Opticast, and enhance its system for the development of an IP service.
Sky Perfect said it expects the merger to have a minimal impact on the holdings’ financial results.
In the third quarter which ended on 31 December 2013, Sky Perfect JSAT had revenues of Y41.4bn (US$409m), a 5% increase on Q3 a year ago. Its operating income was Y6.08bn (US$60.1m), while its EBITDA stood at Y12.12bn (US$119.8m), both up compared to December 2012.
Meanwhile, Sky PerfectTV saw its number of subscribers decline by 69,000 in Q3. In the two previous quarters, the services had already lost 54,000 subscribers. Opticast had revenues of Y2.83bn (US$28m) and an operating income of Y413m (US$4m) in the third quarter, a slight increase compared to Q3 a year ago.
Separately, the CEO of Indonesian satellite operator Indosat confirmed a few weeks ago that Sky Perfect JSAT was “one of the potential partners to launch Palapa-E at the 150.5E orbital slot”.
In an interview with SatelliteFinance, Alexander Rusli said the Indonesian company was in talks with several global satellite operators over the joint development of the 150.5E orbital slot, where the Palapa-E satellite will be positioned.
In November last year, reports claimed that Indosat had signed an MoU with JSAT for a joint satellite project. Shortly after, the Japanese operator issued a statement saying that it was indeed “discussing the model of cooperation with Indosat to expand the satellite business in Asia”. But it added at the time that it had “not made any decision on this matter yet”.
Palapa-E is being constructed by Orbital Sciences and is due to be launched in 2016.
Meanwhile, JSAT has contracted SpaceX to launch its JCSAT-14 satellite, which will replace JCSAT-2A at 154E.
The C-band, Ku-band satellite, which is scheduled to be launched in the second half of 2015, will cover the Asia Pacific region with the regional Ku-band beams designed to address the aeronautical mobility markets as well as resources exploration industries such as oil and gas.
