Telesat to Become Public
Company through Agreement with Loral Space &
Communications and PSP Investments
November 24, 2020
Telesat Canada has entered
into an agreement with Loral Space &
Communications Inc. 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.