AMSTERDAM: Intelsat Ltd, a global satellite communications leader providing services in over 200 countries and territories, reported today that its shareholders have approved its proposed acquisition of six satellites and orbital location rights from Loral Space Communications Corporation at a shareholders' meeting held earlier in the day at Amsterdam, The Netherlands.
Shareholder approval of the transaction was required under Intelsat's bye-laws.
The proposed acquisition of the Loral assets would complement Intelsat's global network, which includes capacity on 26 satellites, by adding complete coverage of the important North American market and by increasing Intelsat's customer base in the cable television and broadcasting segments, an Intelsat release stated.
Intelsat's shareholders approved and adopted the asset purchase agreement relating to the proposed acquisition, which is expected to occur at the conclusion of an auction process under Section 363(b) of the US Bankruptcy Code. If approved by the bankruptcy court, the transaction will be subject to the receipt of regulatory approvals and the satisfaction of other conditions.
Intelsat chief executive officer Conny Kullman said, "We thank our shareholders for their overwhelming support of the Loral asset purchase. These assets would enable Intelsat to enhance its global network to include a North American franchise and to offer customers a global end-to-end solution."
Kullman further said, "The acquisition would also result in an increase in Intelsat's revenues from broadcasting, cable television, private data network and other point-to-multipoint traffic. With the shareholder vote successfully concluded, we now look forward to the next milestone in this process -- the successful conclusion of the bankruptcy court auction process."