Telenor is selling its 4 per cent share in the world's largest satellite company, Intelsat for $129 million.
Telenor is selling its 4 per cent share in the world's largest satellite company, Intelsat for $129 million. The sale will give Telenor a book profit of around NOK 400 million (approximately $62 million). Yesterday, the Intelsat AGM approved the sales agreement involving today's shareholders selling their shares to private investors for $18.75 a share. Telenor has approximately 6.9 million shares in Intelsat. The settlement for the shares will be in cash, and is expected to be concluded around year end 2004.
"We made an important choice in 2001 when we continued as shareholders after Intelsat was privatised (and turned into a private limited company). We are now rewarded for this strategy. Even though we are selling our shares in Intelsat, Telenor will still be a part owner of the new Intelsat 10-02 satellite, which was launched in June. We will continue to develop the strong industrial co-operation with Intelsat, encompassing operations and joint ownership of satellites, independently of the change of ownership in the company", says Stig Eide Sivertsen, Managing Director of Telenor Broadcast Holding.
The agreement between Intelsat and Zeus Holding Limited was signed on August 16th this year and involves Zeus taking over Intelsat. Zeus is a consortium of four private equity groups.
Intelsat was set up in 1964 as an Inter Governmental Organisation with 11 member states. In 2001 Intelsat was privatised and made into a private limited company. The ownership shares were set by use. Telenor was one of the biggest users and received around 4 per cent of the shares in the company.