SES is to increase its share capital in order to pay for the acquisition of O3b Networks.
In April, SES said it had agreed to pay $20 million to take its ownership of O3b from 49.1% to 50.5%. By exercising a call option it will acquire the remaining 49.5% of O3b shares for $710 million.
It means O3b will no longer go ahead with its planned IPO.
To fund the transaction SES is Launching capital raising of 39.86 million new fiduciary depositary receipts (FDRs) and 19.93 million new Class B shares.
Karim Michel Sabbagh, President and CEO, SES says O3b represents a strong and positive fit with the satellite operator. “Taking 100% control of O3b exceptionally strengthens the SES differentiation. O3b allows SES to expand its global reach and solutions, augments SES’s essential capabilities across the data-centric verticals and enhances SES’s foundations for sustainable growth.
O3b Network runs a constellation of 12 High Throughput Satellites (HTS) at Medium Earth Orbit (MEO) that delivers a global ‘fibre in the sky’ connectivity solution with ultra-low latency.
