Malaysian VSAT provider TSGN has struck a deal with Hong Kong-based operator APT Satellite to own its first designated satellite payload.
The privately owned group’s CEO Kent Ho said its C-band payload on Apstar-9, which China is due to launch this…
Malaysian VSAT provider TSGN has struck a deal with Hong Kong-based operator APT Satellite to own its first designated satellite payload.
The privately owned group’s CEO Kent Ho said its C-band payload on Apstar-9, which China is due to launch this fourth quarter, is part of a RM250m (US$69.4m) project to build out its ground and space segments.
“This substantial investment is our long term approach to ramp up our regional growth while being in control of our competitiveness in terms of flexibility, pricing, etc,” he told SatelliteFinance.
Ho believes the shift from just leasing capacity on several satellites will help TSGN, which has a turnover of RM45m-50m (US$12.5m-13.9m), ramp up growth and double regional sales by 20% within five years.
Targeting Southeast Asia and Asia Pacific markets, it aims to leverage the collaborations it has already built in Brunei and Indonesia.
The MySAT-1 payload strategy is being funded through bank loans as well as internal resources, although the group has not ruled out other financing sources such as an IPO down the line.
“We are actively looking into the capital markets to fuel our growth and M&A opportunities to expand our revenue and operation/service presence,” Ho said.
The payload covers a portion of Apstar-9’s 32 C-band transponders. The spacecraft being built by China Great Wall Industry Corporation (CGWIC) also includes 14 Ku-band transponders that, for the moment, are not part of the deal.
APT director and president Cheng Guangren said: “The company is pleased to have the opportunity to join hands with its long term customer, TSGN, in offering the C-band transponders on Apstar-9 satellite.”
Apstar-9 is set to replace Apstar-9A at 142E, where it will build on the coverage of Apstar-5 at 138E, Apstar-6 at 134E and Apstar-7 at 76.5E.
CGWIC, whose parent, state-run China Aerospace Science and Technology Corporation, indirectly owns just over half of APT Satellite, had the option to buy 35% of Apstar-9 as part of its construction contract. However, the option period for this is understood to have lapsed – unless both sides agree to extend it.
APT had also been considering debt to partly fund Apstar-9’s US$216m cost. It has already paid 20% of its CGWIC contract through internal resources, but will be required to pay the rest within one month of the in-orbit delivery.
VP and company secretary Brian Lo said: “APT has enough cash at hand and therefore it does not need additional fund raising for the balance payment for Apstar-9.”
The operator has funded its satellites with a 50:50 debt to internal funding ratio in the past, with Bank of China (Hong Kong) leading the financing.
In November, APT and CGWIC signed a framework agreement that would make the latter responsible for the in-orbit delivery of a new satellite called Apstar-10, including its payload, financing and launch services.
Further details about this next bird have not yet been announced.
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