Telesat to remain Canadian controlled, will become a publicly listed company on Nasdaq, and is considering listing on a Canadian stock exchange.
OTTAWA, CANADA, November 24, 2020 (Telesat Canada PR) – Telesat Canada announced today that it has entered into an agreement with Loral Space & Communications Inc. (NASDAQ: LORL) (Loral) and Public Sector Pension Investment Board (PSP Investments) pursuant to which Telesat Canada and Loral will become subsidiaries of Telesat Corporation (Telesat), a new publicly traded Canadian incorporated and controlled company.
The shares of Telesat will be listed on the Nasdaq Global Select Market at the closing of the transaction, the market on which Loral is currently listed, and Telesat is also considering a listing on a Canadian stock exchange in connection with the closing of the transaction in 2021. Telesat Corporation will be headquartered in Ottawa and led by Telesat Canada’s Chief Executive Officer Daniel S. Goldberg. Telesat’s voting and governance provisions will ensure that the company is and remains Canadian-controlled.
This transaction allows public market investors, including Loral’s stockholders, to own Telesat directly, and, moreover, provides Telesat access to the public equity markets to support its compelling growth initiatives, including its revolutionary, highly advanced low Earth orbit (LEO) satellite constellation. Telesat’s state-of-the-art LEO network will enable affordable, reliable, high-speed broadband connectivity everywhere on Earth, positioning Telesat to be a leader in this high growth industry.
“Today’s announcement rationalizes our corporate structure and is another important step in our efforts to execute our exciting growth strategy, deliver the most competitive and innovative services to our customers, and create value for our shareholders and other key stakeholders,” said Dan Goldberg, Telesat’s President and CEO. “Following the closing of the transaction, Telesat will have access to the public equity markets, providing increased flexibility and optionality to support our promising investment opportunities, including Telesat LEO, which will bridge the digital divide both at home in Canada and around the world, and give our customers the competitive advantage they need to be successful. We look forward to engaging with our expanded shareholder base as we implement our growth plans with a focus on generating strong equity returns.”
The transaction is expected to close in the second or third quarter of 2021, subject to the receipt of required regulatory approvals, the approval of Loral’s stockholders (including a majority of Loral’s stockholders not affiliated with MHR Fund Management, PSP Investments or other transaction participants) and other customary conditions.
Additional information with respect to the transaction will be available in filings made with the U.S. Securities and Exchange Commission by Telesat Canada and Loral. Loral stockholders can obtain that information at www.sec.gov.
In connection with the transaction, Wachtell, Lipton, Rosen & Katz and Stikeman Elliott LLP acted as legal counsel to Telesat, and Goldman Sachs & Co. LLC and BMO Capital Markets acted as financial advisors to Telesat.
Backed by a legacy of engineering excellence, reliability and industry-leading customer service, Telesat has grown to be one of the largest and most successful global satellite operators. Telesat works collaboratively with its customers to deliver critical connectivity solutions that tackle the world’s most complex communications challenges, providing powerful advantages that improve their operations and drive growth. Telesat LEO, our Low Earth Orbit network, will revolutionize global broadband connectivity by delivering a combination of high capacity, security, resiliency and affordability with ultra-low latency and fiber-like speeds.
Privately held and headquartered in Ottawa, Canada with offices and facilities around the world, Telesat’s principal shareholders are Canada’s Public Sector Pension Investment Board and Loral Space & Communications Inc. (NASDAQ: LORL). For more information, visit https://www.telesat.com.