Loral Space & Communications Inc. announced its entry into a definitive agreement with MacDonald, Dettwiler and Associates Ltd. (MDA) related to the sale of Loral’s wholly-owned subsidiary, Space Systems/Loral (SS/L). The transaction provides for Loral to receive consideration from MDA of US$875 million and cash dividends and other payments from SS/L which are expected to be in excess of US$135 million.
“Combining the world-recognised communications capabilities of MDA with SS/L creates a powerful space communications leader and enhances the business prospects, both commercial and government, for each of MDA and SS/L,” said Michael B. Targoff, CEO of Loral Space & Communications.
“With this transaction, SS/L’s employees, customers and suppliers should be confident as to the long term prospects and direction for this highly valued contributor to the global communications infrastructure.”
“Both Space Systems/Loral and MDA are already important suppliers to the worldwide satellite industry,” said John Celli, president of Space Systems/Loral. “The combination is a very good strategic fit for both companies. Together, we will be in an even stronger position to support the growth requirements of both new and existing customers.”
“We are pleased with the transaction and proud of our management team’s success in solidifying SS/L’s position as the leading commercial satellite provider in the world,” said Dr. Mark Rachesky, chairman of the board of directors of Loral. “We look forward to completing this transaction, as it validates the board’s continued commitment to realiSing significant value for all Loral shareholders.”