Historic Assembly Says All Systems Go for 2001: INTELSAT Privatization Plan and Schedule Formally Approved by Governments
In an historic meeting here 13-17 November, the INTELSAT Assembly of Parties, representing all 144 member governments, unanimously approved a plan to privatize INTELSAT. All transactions will be completed on 18 July 2001, allowing sufficient time to meet some members’ legislative approval requirements.
Privatization places INTELSAT on a level playing field to better address opportunities of the telecommunications marketplace. Streamlined decision-making will make it easier to expand the business, leveraging well established, industry-leading services and global distribution channels. Additional capital market transactions should be expected in 2001. An initial public offering is also expected within one year after privatization.
The approved plan endorses INTELSAT’s owners’ earlier recommendation to transfer substantially all assets, liabilities and operations to a private, Bermuda-based holding company, known as Intelsat Ltd., and its
100%-owned subsidiaries. All current and planned C- and Ku-band
satellites, as well as corresponding operating licenses, will be held by Delaware-based subsidiary and U.S. licensee, Intelsat LLC. Orbital filings in the Ka, V and BSS frequency bands will be authorized for use by Intelsat Ltd. by the United Kingdom. The private company’s main
service subsidiary will be in Washington, D.C., in the current INTELSAT Headquarters building.
A new, fiduciary board of directors, with a majority of independents, will be elected by all shareholders upon privatization.
In accordance with its heritage as a global satellite communications services provider to all countries, Intelsat Ltd. will continue to honor a clear set of public service commitments on a commercial basis. These include the continued commercial provision of: 1) global coverage and global connectivity; 2) service to "lifeline" customers around the world according to specific Lifeline Connectivity Obligation Contracts; and 3) non-discriminatory access to the Intelsat Ltd. satellite fleet.
A small, separate and independent intergovernmental office will monitor the private company’s implementation of these public service commitments.
"I am elated with this decision and the green light to move forward," said Mr. Conny Kullman, INTELSAT’s Chief Executive Officer. "Privatization in this manner will allow us to grow and remain a strong competitor in the global market. It is a win-win solution that meets important international policy requirements but also gives the flexibility our investors and customers demand around the world," he added.
For more information see INTELSAT news release #2000-21, dated 15 September [http://www.intelsat.int/news/press/2000-21e.htm].
INTELSAT owns and operates a global communications satellite system providing business-to-business telecommunications services for telephony, broadcast video, corporate/private networks and Internet in more than 200 countries and territories.
For further information about this release, please contact us at media.relations@intelsat.int or at +1 202-944-7500
