Loral and Telesat Agree to Combine Into New Public Company
November 23, 2020
Cleary Gottlieb is representing the Special Committee of the board of directors of Loral Space & Communications in Loral’s definitive agreement with Public Sector Pension Investment Board (PSP Investments) and Telesat Canada (Telesat) to combine Loral and Telesat into a new Canadian public company (New Telesat).
The transaction, which is subject to customary closing conditions, was signed on November 23, 2020, and is expected to close in the second or third quarter of 2021. Upon closing of the transaction, the stockholders in Loral, together with PSP Investments and certain current and former management shareholders of Telesat, will beneficially own all of the equity in New Telesat in approximately the same proportion as their current, indirect ownership in Telesat.
Loral Space & Communications is a satellite communications company whose principal asset is its majority economic ownership interest in Telesat Canada. Telesat Canada is a global operator of telecommunications and direct broadcast satellites used to distribute video entertainment programming and broadband data and to provide access to Internet services and other value-added communications services. Telesat is also developing a global constellation of low earth orbit satellites.
For more information, please see the official press release here.