Loral announces definitive agreement with PSP Investments and Telesat to combine Loral and Telesat into a new public company
November 24, 2020
On November 24, 2020, Loral Space & Communications Inc. (Loral) entered into a definitive agreement with Public Sector Pension Investment Board (PSP Investments) and Telesat Canada pursuant to which Loral and Telesat Canada will become subsidiaries of Telesat Corporation (New Telesat), a new publicly traded Canadian company. Upon closing of the transaction, the stockholders in Loral, together with PSP Investments and certain current and former management shareholders of Telesat will, directly or indirectly through a limited partnership, own all of the equity in New Telesat in approximately the same proportion as their current, indirect ownership in Telesat. The shares of New Telesat are expected to be listed on the Nasdaq Global Select Market at the closing of the transaction, the market on which Loral is currently listed, and New Telesat is also considering a listing on a Canadian stock exchange in connection with the closing of the transaction.
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.
Loral, based in New York, NY, is a satellite communications company. Loral holds a 62.7% economic interest in Telesat Canada.
Telesat, based in Ottawa, ON, is a Canadian satellite communications company.
PSP Investments is one of Canada’s largest pension investment managers. PSP Investments holds a 36.7% interest in Telesat Canada.
McCarthy Tétrault LLP advised Loral with a team led by Robert Hansen that included Nigel Johnston, Gabrielle Richards and Stefanie Morand (Tax), David Woollcombe, Heidi Gordon, Mariko Rivers, Gerald Gaunt, Rachel Wasserman and Judy Tian (Business), Grant Buchanan, Keith Rose and John Boscariol (Regulatory), Oliver Borgers and Kate McNeece (Competition/ICA) and Geoff Hall (Litigation).