Just when I was hoping that Frank and Gordon would be able to provide Santa with navigational assistance from space, Bell has announced that it has sold Telesat to Loral Space & Communications, with the federal employees’ pension fund providing sufficient Canadian content to pass the foreign ownership tests.
Telesat had been in Bell’s hands in part since 1992 and Bell acquired the minority shares (42%) held by other Stentor members and Spar back in 1998. The move continues Michael Sabia’s drive to simplify Bell’s corporate structure and focus on core telecommunications business. The deal provides Bell with $3.25B in cash, enough to fund almost 3 years of dividend payouts for Bell shareholders.
On closing, Loral Skynet, which provides satellite services in Europe, Asia, the Middle East and Latin America, will be combined into the new company. Combined with Telesat’s existing services, the new company will be one of the world’s leaders, headquartered in Ottawa. The company will continue to be headed by Dan Goldberg (no relation).
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