Lockheed Martin to Divest Majority Stake in COMSAT International to World Data Consortium
Lockheed Martin
today announced that it has entered into an agreement with
World Data Consortium, LLC, under which the Corporation will divest an
81-percent ownership position in its COMSAT International operations
in Latin America to World Data. Terms of the transaction were not
disclosed but will not be material to Lockheed Martin. The divestiture
is subject to regulatory approvals and customary closing conditions,
and it is anticipated it will be completed in four to six months.
COMSAT International is a leading provider of data and voice
services to corporations and telecommunications carriers in major
Latin American markets, including Argentina, Brazil, Colombia, Mexico,
Peru and Venezuela. Operating in Latin America since 1990, COMSAT
International maintains a fully integrated managed fiber, wireless and
satellite network, over which it provides domestic, regional and
international telecommunications services.
World Data Consortium, LLC, is a privately held telecommunications
investment firm based in Washington, DC. Its founders and principals
include George M. Kappaz, Philip M. Walker and Timothy B. Harmon. The
firm focuses on creating value through the acquisition, integration
and operation of advanced telecommunications service businesses in
Latin America and other regions of the world.
COMSAT International originally was a component of COMSAT
Corporation, which Lockheed Martin acquired in 2000 through its
Lockheed Martin Global Telecommunications unit. When Lockheed Martin
determined it would exit the global telecommunications services
business in December 2001, it indicated it would divest itself of
certain telecommunications assets, including COMSAT International.
Vance Coffman, chairman and chief executive officer of Lockheed
Martin, said, “This transaction marks the latest step by Lockheed
Martin to divest non-core businesses in a prudent but timely manner.”
“Since our decision six months ago to curtail our global
telecommunications services activities, the Corporation also has sold
its mobile telecommunications unit and announced the sale of its World
Systems satellite business, both formerly part of the COMSAT
transaction,” Coffman added.
George Kappaz of World Data said, “COMSAT International’s strong
presence and reputation in key Latin American markets, its outstanding
personnel and the quality of its network and its customers make this
acquisition a key element of our Latin America strategy. We look
forward to enhancing the business through acquisition of other
complementary telecom operators, and deployment of new services and
enhanced infrastructure. We are delighted to work with Lockheed Martin
on this transaction.”
While Lockheed Martin and World Data secure requisite regulatory
approvals from U.S. and Latin American government bodies, COMSAT
International will continue to function as a Lockheed Martin business.
COMSAT International employs some 470 personnel in the U.S. and in six
Latin American countries.
Lockheed Martin is a global enterprise principally engaged in the
research, design, development, manufacture and integration of advanced
technology systems, products and services. Headquartered in Bethesda,
Maryland, the Corporation’s core businesses comprise systems
integration, space, aeronautics and technology services. Lockheed
Martin had 2001 sales of $24 billion.
SAFE HARBOR STATEMENT:
Some of the statements in this news release are forward-looking
and relate to anticipated future operating results or events.
Forward-looking statements are based on Lockheed Martin Corporation
management’s current expectations and assumptions, which may be
affected by subsequent developments and business conditions, and
necessarily involve risks and uncertainties. Therefore, there can be
no assurance that actual future results will not differ materially
from anticipated results. Completion of the sale of the COMSAT
International business is subject to government approvals, including
filings with the Federal Communications Commission, foreign
telecommunication regulators and foreign antitrust authorities and
other closing conditions. In addition, readers should refer to
Lockheed Martin’s annual report for the year ending December 31, 2001
filed on Form 10-k and other disclosure documents filed with the
Securities & Exchange Commission (www.sec.gov) for specific details on
some of the factors that may affect operating results. Lockheed Martin
expressly disclaims any obligation to update forward-looking
statements.
