© 2010 Rapid TV News
Chris Forrester ©RapidTVNews | 24-09-2009
Harbinger Capital Partners, a New York-based investment company, is buying the rest of SkyTerra that it does not already own in a $280m transaction. Washington-based SkyTerra will then be de-listed and go private. Where does this leave Inmarsat, where Harbinger also holds a major stake?
SkyTerra at the moment is focusing on North America and the introduction of an all-in-one cellular phone that’s combined with a satellite phone. However, it also holds certain international aspirations to go global with its service.
Harbinger paid a 56% premium over SkyTerra’s then average 30-day shareprice for its move. It already held 48% of SkyTerra’s stock. Harbinger invested $500m, by way of a loan, to SkyTerra in July last year. The deal needs FCC and other regulatory approval and is likely to close, subject to those approvals, at year-end, or the early New Year.
Harbinger is backed, in part, by Philip Falcone and stated to be “one of the world’s richest individuals”.
SkyTerre said: “The transaction is the culmination of a thorough evaluation of SkyTerra's strategic alternatives by a special committee of SkyTerra's Board of Directors composed solely of independent directors. The special committee was assisted in its evaluation by its independent financial advisor, Morgan Stanley & Co., and counsel, Skadden, Arps, Slate, Meagher & Flom LLP. Harbinger was assisted by its financial advisor, UBS Investment Bank, and counsel, Weil, Gotshal & Manges LLP.”
But where does this leave Inmarsat, where Harbinger also holds a major stake (28%) and which Harbinger has already said it would like to absorb, thus taking control of much of the world’s two-way aeronautical and maritime wireless traffic? Harbinger sees considerable future growth in two-way radio, mobile data, governmental and emergency services business as well as military traffic.
Inmarsat’s shares fell back 4.5p on Sept 23 on the news.
© Rapid TV News 2009
