The South African government has approved the acquisition of a majority stake in micro-sat manufacturer SunSpace.
The state will purchase between 55% and 60% of the company funded through the government’s existing budget.
While financial details have…
The South African government has approved the acquisition of a majority stake in micro-sat manufacturer SunSpace.
The state will purchase between 55% and 60% of the company funded through the government’s existing budget.
While financial details have not been disclosed, local reports have estimated that the investment would cost in the region of R100m (US$14.5m). The minister of science and technology, Naledi Pandor, is expected to outline further details on the deal in the coming weeks.
The acquisition was first mooted in early 2010 after it became clear that Sunspace could not attract the private funding necessary to continue as a viable business. The state remains the company’s sole customer and, according to local news, SunSpace executives have bemoaned the fact that potential satellite customers from the developing world have shied away from the company due to the lack of governmental backing.
Originally an offshoot of the University of Stellenbosch’s engineering department, SunSpace became a commercial entity in 2000 majority owned by the University’s commercial arm Unistel Group Holdings.
Other shareholders include black empowerment funds NEF (National Empowerment Fund), which purchased a 30% stake for R50m (US$7.2m) in 2009, and Dusty Moon Investment group.
The company has two satellites currently in operation SunSat, which was launched by NASA in 1999, and SumbandilaSat, which was launched into a low earth orbit by a Soyuz rocket in September 2010. The latter, which was commissioned by the Department of Science and Technology and cost approximately R26m (US$3.8m), suffered power system anomalies significantly reducing its performance.
