ArabSat, the leading communications satellite operator in the Middle East, expanded its business partnership with South Eastern Europe telecom group, Hellenic Telecommunication Organization, by purchasing its 99.05 percent equity participation in Hellas-Sat Consortium for 208 million euros. The remaining 0.95 percent share is held by the operation’s original founders.
The deal, scheduled to be completed by the second quarter of 2013, was signed upon an aggregate consideration of 208 million euros which represents the 99.05 percent of Hellas-Sat’s enterprise value. It also correlates to seven times the EBITDA of Hellas Sat for the year 2012, as well as the cash held by Hellas-Sat on the completion date of the agreement.
With this new development, Arabsat now has the exclusive access to the 39 degrees East orbital position, 30 active transponders on HellasSat-2, and all associated radio frequencies from the Hellenic Republic and the Republic of Cyprus. The satellite is said to have an expected lifespan of 15 years, which suggests that it will need to be replaced in the next four to five years.
Khalid A. Balkheyour, ArabSat’s President and CEO noted, “This step outlines Arabsat’s determination to pursue its strategic plan to grow its resources in terms of expanding to new orbital slots and new frequency rights, and to enter new markets. In 2012, Arabsat has presented before the satellite industry its vision to move from regional to global and become one of the top 5 satellite operators in the world by the year 2020. This transaction, in addition to the new 6th satellite generation program encompassing the design, manufacturing and launch of 3 new satellites from now until 2016 proves that Arabsat is on the right track to achieve its vision.”
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