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Motient, SkyTerra Consolidates Ownership of MSV and TerreStar Networks |
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LINCOLNSHIRE, Ill. & NEW YORK, May 9, 2006/Satnews Daily/ — Motient Corp. (MNCP) and SkyTerra Communications, Inc. (SKYT) have signed definitive agreements to consolidate the ownership and control of Mobile Satellite Ventures LP (MSV) and its corporate general partner under SkyTerra. Both companies also agreed to consolidate the ownership and control of TerreStar Networks Inc. under Motient.
In a statement, the two companies said the series of transactions would result in SkyTerra ultimately owning 70 percent of MSV, and Motient owning 74 percent of TerreStar, each on a fully-diluted basis and assuming certain other stakeholders participate in the transaction.
Both MSV and TerreStar also announced plans to provide advanced mobile satellite communications services throughout North America.
In a statement, the companies said the two companies, MSV and TerreStar, will each be controlled by an independent, publicly traded entity. “Each company will be better positioned to pursue the deployment of separate hybrid satellite and terrestrial based communications networks and engage in partnerships, or other arrangements, with potential strategic partners,” it said.
Motient currently holds a 43.4 percent interest in MSV and a 54.3 percent interest in TerreStar. SkyTerra, through an 80 percent owned subsidiary, currently holds a 16.2 percent stake in MSV and a 13.1 percent interest in TerreStar, each on a fully-diluted basis.
Christopher Downie, chief operating officer of Motient said, “After careful consideration of various structures we could pursue to achieve our goal, we concluded that the separation of MSV and TerreStar into two independent publicly traded entities will provide each company and our stockholders with the best path to unlock the current and future value of both businesses.”
Jeffrey Leddy, CEO and president of SkyTerra agreed, adding the transaction provides MSV and TerreStar a clear path to execute their respective business plans and to maximize their abilities to capitalize on strategic opportunities and relationships.
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