[SatNews] Arabsat has signed an agreement with the Hellenic Telecommunication Organization (”OTE”) for…
the acquisition of its 99.05 percent equity participation in Hellas Sat Consortium Ltd. (“Hellas Sat”). The share purchase agreement was signed upon an aggregate consideration of 208 million euros, representing the 99.05 percent, of:
- An enterprise value of Hellas Sat, amounting to 157 million euros, which corresponds to seven times the EBITDA of Hellas Sat for 2012, and
- The cash held by Hellas Sat on the date of completion of the transaction, estimated at 53.4 million euros
Hellas Sat has the exclusive use of the orbital position of 39 degrees East and all associated radiofrequencies from the Hellenic Republic and the Republic of Cyprus. The company is the operator of the Hellas-Sat 2 satellite, one of the most powerful satellites with wide European coverage. Apart from Europe, the satellite Hellas Sat 2 covers the Middle East and South Africa and has a portfolio of more than 100 customers in 26 countries. The transaction was conducted through Arabsat Cyprus Ltd., a 100 percent subsidiary of Arabsat, and is expected to be completed by Q2 2013 after all necessary procedures have been finalized and is subject to approval by the competent authorities.
OTE, the seller is the largest telecommunications provider in the Greek market and, together with its subsidiaries, forms one of the leading telecom Groups in South-eastern Europe. OTE is among the five largest listed companies, with respect to capitalization, in the Athens Stock Exchange and is also listed in the London (LSE) Stock Exchange. The OTE Group offers a full range of products and services, from broadband services, fixed and mobile telephony, to high-speed data communications and leased lines services. Arabsat extends its appreciation to its financial and legal advisors led by Renaissance Capital and Generation Alfa and which included: Pamboridis LLC, DLA Piper and KPMG Greece.
