Telesat Canada and APT Announce Closed a Transaction Pursuant to Which Telesat Has Transferred its Leasehold Interests in Telstar 10 to APT
Telesat Completes Transfer of Its Interests in Telstar 10/Apstar 2R Back to APT Satellite Company
Longtime Asian Satellite Operator Has Now Assumed Full Commercial Control of Telstar 10/Apstar 2R
Telesat Canada, the world’s fourth largest fixed satellite services operator, and APT Satellite Company Limited, a wholly-owned subsidiary of APT Satellite Holdings Limited, announced today that they have closed a transaction pursuant to which Telesat has transferred its leasehold interests in Telstar 10 to APT, along with certain customer contracts related to the satellite. As announced on June 1, 2009, the total price was approximately US$69 million.
“The transfer of our interests in Telstar 10 to APT makes strong strategic sense for a number of reasons, including APT’s long-standing responsibility for the satellite’s operation, the complex regulatory environment associated with the satellite, and the upcoming requirement to replace Telstar 10,” said Dan Goldberg, President and CEO of Telesat.
APT and Telesat have assured current users of Telstar 10 that they will continue to receive the same high quality services they have enjoyed to date, and both companies will endeavor to ensure a seamless and smooth transition for their customers.
“The satellite, also known as Apstar 2R, is one of the leading satellites in the Asian market,” said Cheng Guangren, Executive Director and President of APT. “This agreement is the right strategic move for our company given APT’s growth plans and the attractive base of customers who rely on Apstar 2R. We look forward to serving them in the years to come and working with them to expand our presence in Asia and other satellite service markets.”
About Telesat (www.telesat.com)
Headquartered in Ottawa, Canada, with offices and facilities around the world, Telesat is the fourth-largest fixed satellite services operator. The company provides reliable and secure satellite-delivered communications solutions to broadcast, telecom, corporate and government customers. Telesat has a global state-of-the-art fleet of 11 satellites with another satellite under construction, and manages the operations of 13 additional satellites for third parties. Telesat is privately held. Its principal shareholders are Canada’s Public Sector Pension Investment Board and Loral Space & Communications Inc. (Nasdaq:LORL – News).
As announced previously, Telesat continues to be in discussions regarding the potential sale of its interests in another of its international satellites. However, Telesat cannot at this time assess the probability of concluding any further transaction under discussion or under what terms, including price, the satellite may be sold.
About APT (www.apstar.com)
APT Satellite Holdings Limited (the “Group”) is listed on The Stock Exchange of Hong Kong Limited. Having started its operation in 1992, the Group provides high-quality services in satellite transponders, satellite communications and broadcasting services for the broadcasting and telecommunications sectors in Asia Pacific, Europe and the United States. The Group currently operates the APSTAR systems, including Apstar 5, Apstar 6, and Apstar 2R, through its own Satellite Control Center in Tai Po, Hong Kong. In line with its business development strategies, the Group also provides satellite broadcasting services and telecommunications services to customers. (Stock code: 1045)
