Luxembourg’s Societe Europeenne des Satellites (SES) has announced that it has agreed to purchase General Electric’s satellite unit, GE Americom Communications, for $5 billion in cash and stock, creating what it described as the world’s largest satellite services provider.
SES said it had created a new company, SES Global, through which it would pay GE $2.7 billion in cash and the remaining amount in 15.4 million new SES Global shares.
According to a statement SES Global would have pro forma fiscal 2000 revenues of $1.26 billion with $1.08 billion in earnings before interest, tax, debt, and amortisation (EBITDA) and that its enterprise value after the close of the deal would be approximately $12.59 billion.
SES Global would have a free float of 25 percent and the company added that it would seek a listing in the United States.
GE’s financing arm GE Capital would own another 21.5 percent of SES Global and 20.1 percent of the voting rights.
SES Global will issue shares to existing SES shareholders, including Luxembourg’s public institutions to maintain their current level of ownership and voting interest in SES, and Deutsche Telekom, which currently owns 21 percent of SES.