On 24th November, Loral Space & Communications and Telesat announced their plan to merge and form Telesat Corporation, which will be a Canadian public company. The deal is expected to be sealed by next year. In an agreement with Canada’s Public Sector Pension Investment Board (PSP Investments), the two companies agreed to be Telesat Corporation subsidiaries. The head of Telesat Corporation will be Dan Goldberg, CEO Telesat, and its headquarters will be in Ottawa.
Telesat wants to raise funds for its 298-satellite Telesat LEO Constellation through a public listing. Therefore, Telesat Corporation is expected to be listed on the Nasdaq Global Select Market and also on the Canadian stock exchange. Currently, Loral is listed on the Nasdaq, and it will be unlisted after the transaction is closed. This is according to the news release on 24th November. Goldberg said that the money which will be collected from the issue of equity would be used to fund LEO.
In the 2nd and 3rd quarter of 2021 is when Telesat Corporation shares are expected to start trading on Nasdaq following regulatory approvals and transaction approval by Loral stakeholders. Goldberg said that this announcement signifies an essential step in executing the company’s growth strategy and corporate structure. He added that it’s an opportunity for them to deliver innovative and most competitive services to their customers as well as creating value for their key stakeholders.
After the merger, Goldberg also said that Telesat Corporation would access public equity markets that will help support the company’s promising investment chances, such as Telesat LEO and increased flexibility. Telesat LEO is expected to help Canadian residents and the entire world as well, giving its customers a competitive advantage for them to be successful. Goldberg said that they are looking forward to engaging with shareholders in the implementation of their growth plan with the aim of gathering sturdy equity returns.
Telesat is a satellite communications company, which was established in 1969, and its major shareholders are PSP Investments and Loral Space & Communications. The Loral and PSP Investments are expected to remain the major shareholders until the transaction is closed. Telesat’s news release on 24th November said that the transaction allows Telesat to access public equity markets, supporting growth initiatives such as its highly advanced low Earth orbit satellite constellation. The transaction will also allow Loral’s stakeholders to own Telesat Corporation directly.https://soccernurds.com/