Luxembourg-based satellite operator SES has confirmed that it is in talks with its rival satellite operator, Intelsat, regarding a possible combination. The potential merger, which was first rumoured last August, would create a company worth approximately £10 billion, including the European fleet of Astra satellites. However, SES has stated that there can be no certainty that a transaction would materialize.
SES has also emphasized that its board remains fully committed to acting in the best interest of SES and its shareholders. Any deal would require approval from the Luxembourg government, which is the largest shareholder in SES.
Last month, SES suspended a long-running legal action against Intelsat. The legal action was related to the running costs of the C-Band Alliance, with SES seeking reparations from Intelsat. In a separate legal action, SES is suing for a 50/50 allocation of the FCC’s Accelerated Relocation Payments.
The talks between SES and Intelsat come amid changing market conditions, and the potential merger could help the combined company to better compete in the satellite market. However, as SES has stated, there can be no certainty that a transaction will occur, and any deal would be subject to regulatory approval.
In response to rumours in the market, SES S.A. confirms that the company has engaged in discussions regarding a possible combination with Intelsat. At this stage, there can be no certainty that a transaction would materialise. The Board of SES remains fully committed to acting in the best interest of SES and its shareholders.Statement by SES