Canadian satellite operator Telesat is conducting a strategic review that could result in an IPO of the business.
CEO Daniel Goldberg told investors yesterday he had been given the go-ahead to explore an IPO of Telesat’s shares or other strategic…
Canadian satellite operator Telesat is conducting a strategic review that could result in an IPO of the business.
CEO Daniel Goldberg told investors yesterday he had been given the go-ahead to explore an IPO of Telesat’s shares or other strategic alternatives, but declined to give further details.
The operator is 64% financially owned by US-based Loral Space & Communications, while Canadian pension fund PSP owns the remaining 36%. However, Loral’s share of the voting rights is only 33.33% as a result of now defunct Canadian ownership rules.
These ownership restrictions were removed by the Canadian government earlier this year, giving Telesat’s owners greater strategic flexibility with potential investors.
On September 2, SatelliteFinance reported that Loral is considering a full sale of its manufacturing subsidiary, Space Systems Loral.
Loral has previously announced that Credit Suisse and JP Morgan have been mandated to manage a listing of 19.9% in the subsidiary. However, it is understood that the advisers are running a parallel process, with a full sale one of the possibilities.
Announcing Q3 2010 results, Telesat recorded C$209m (US$208m) in revenue for the three months to September 30, representing a 12% increase to the C$23m (US$22m) it posted for the corresponding period in 2009. When adjusted for foreign exchange rate differences, the revenue increase is 14%, the company said.
EBITDA for Q3 2010 was C$160m (US$159m), an increase of 24% compared to the C$31m (US$30m) recorded for the corresponding period last year, or a 26% rise when factoring in foreign exchange rate changes.
According to the company, the year-on-year surge in revenue was primarily driven by its Nimiq 5 satellite, which had its capacity pre-purchased by US-based EchoStar, and its Telstar 11N bird.
Telesat declined to comment further on the strategic review.
