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Abertis Telecom Agrees to Buy a 32% Stake in Eutelsat |
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PARIS, Dec. 6, 2006/Satnews Daily/ — Abertis Telecom, a subsidiary of Abertis Infraestructuras SA based in Spain, has agreed to acquire through a tender offer a 32 percent minority interest in Eutelsat Communications SA for EUR1.1 billion (US$1.5 billion) in cash, the European press has reported.
Reports say Abertis Telecom plans to finance the
acquisition with a syndicate bridge loan. Abertis is said to have
reached an agreement through its subsidiary Abertis Telecom with
investment funds Texas Pacific Group, Spectrum, Chiven and Goldman Sachs
to make the purchase. The deal is subject to approval by anti-trust
authorities. Eutelsat Communications (Euronext Paris: ETL, ISIN code: FR0010221234), the holding company of Eutelsat S.A. has capacity on 23 satellites that provide coverage over the entire European continent, as well as the Middle East, Africa, India and significant parts of Asia and the Americas. Eutelsat is one of the world's three leading satellite operators in terms of revenues.
As of June 30, 2006 Eutelsat's satellites were broadcasting over 2,100 television channels and 970 radio stations, of which over 900 channels were broadcasting via its Hot Bird video neighborhood which serves more than 110 million cable and satellite homes in Europe, the Middle East and North Africa. The Group's satellites also serve a wide range of fixed and mobile telecommunications services, TV contribution markets, corporate networks, and broadband markets for Internet Service Providers and for transport, maritime and in-flight markets.
The acquisition is expected to increase Abertis Telecom's geographic market presence by expanding international business operations.
Eutelsat confirmed the purchase saying it acknowledges the transactions announced by Abertis Telecom to acquire 32 percent of its share capital, and by the investment bank Lehman Brothers International (Europe) to acquire approximately 2 percent of its share capital from certain shareholders at a price of 15.50 EUR per share.
“The company indicates that Abertis Telecom had access to a limited data room, subject to confidentiality commitments, and with the authorization of the board of directors of Eutelsat Communications at its 7 November meeting,” Eutelsat said in a statement.
It added there is no information liable to have a significant impact on the share price of Eutelsat that was communicated to Abertis within the framework of the authorization.
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