Another sat copy sold for a premium over share price. Hmmmm and Bernie keeps sucking money out Loral shareholders. Too bad Bernie looks at Loral as his private cookie jar. Too bad the Board allows it. Jeff Vayda
New Skies Sold For A Billion Dollars
The Hague (SPX) Jun 07, 2004
New Skies Satellites N.V.,
the global satellite
communications
company, today
announced that it has
signed a definitive
agreement for the sale of
the Company to affiliates
of The Blackstone Group,
a leading private
investment firm, for $956
million in cash, equivalent
to approximately $7.96 per fully diluted share.
The Blackstone transaction has received unanimous
approval from the Supervisory and Management Boards of
New Skies, who intend to recommend it to the Company's
shareholders.
"The decision of Blackstone to acquire New Skies is a
reflection of the strength of the business and our
prospects as well as the dedication and expertise of our
employees," said Dan Goldberg, chief executive officer of
New Skies.
"This agreement also provides significant value for our
shareholders, representing a 14% premium over the price
of our stock on April 28th, the day before we announced
that we were considering our alternatives, and a 27%
premium to the average share price during the twelve
months leading up to that date.
"The Management and Supervisory Boards have
considered a number of options to maximize shareholder
value, and have concluded that the offer from Blackstone
is in the best interests of New Skies' shareholders,
employees and customers.
With the strong backing of Blackstone and its extensive
experience investing in, and partnering with,
telecommunications and media companies, we will have
the best possible foundation on which to grow our
business in the coming years," said Goldberg.
"We are excited to be acquiring New Skies, a world class
satellite operator with strong long-term fundamentals," said
Lawrence H. Guffey, senior managing director of
Blackstone and co-head of Blackstone Communications
Partners. "We are particularly pleased to be allying
ourselves with Dan Goldberg and the rest of the New
Skies team, who have an outstanding track record of
success."
The sale of the Company will involve the transfer of New
Skies' business and operations to Blackstone and the
distribution of the cash proceeds to New Skies
shareholders. The sale will be structured as a sale of New
Skies' assets and liabilities. New Skies' business activities
will be continued under ownership by Blackstone and all
employment obligations will be honored.
A circular with information on the transaction will be mailed
to shareholders within approximately one week and an
Extraordinary General Meeting of shareholders will be held
within approximately 40 days.
Once the applicable regulatory approvals have been
received and certain financing and other customary
conditions have been satisfied, New Skies anticipates that
the sale would be completed, and an initial distribution of
approximately 95% of the sale proceeds paid to
shareholders.
This process is currently expected to conclude by
approximately the end of 2004 or early 2005. A final
distribution of the remaining proceeds will be made shortly
thereafter. The text of the agreement with The Blackstone
Group can be found on New Skies' website.
Goldman Sachs & Co. and N M Rothschild & Sons Limited
served as financial advisors to New Skies, and Cleary,
Gottlieb, Steen & Hamilton and De Brauw Blackstone
Westbroek N.V. served as its legal advisers.
Morgan Stanley and Deutsche Bank Securities, Inc. served
as financial advisors to Blackstone, while Simpson
Thacher & Bartlett LLP and NautaDutilh N.V. served as its
legal advisors. Deutsche Bank and ABN AMRO are
providing acquisition financing for the transaction.
New Skies Satellites is one of only four fixed satellite
communications companies with truly global satellite
coverage, offering video, data, voice and Internet
communications services to a range of
telecommunications carriers, broadcasters, large
corporations, Internet service providers and government
entities around the world. New Skies has five satellites in
orbit, ground facilities around the world and one additional
spacecraft under construction.
The company also has secured certain rights to make use
of additional orbital positions for future growth. New Skies
is headquartered in The Hague, The Netherlands, and has
offices in Beijing, Hong Kong, New Delhi, Sao Paulo,
Singapore, Sydney and Washington, D.C. Additional
information is available at
The Blackstone Group, a private investment and advisory
firm with offices in New York, Atlanta, Boston, London and
Hamburg, was founded in 1985. The firm has raised a total
of approximately $32 billion for alternative asset investing
since its formation.
Over $14 billion of that has been for private equity
investing, including Blackstone Capital Partners IV, the
largest institutional private equity fund ever raised at $6.45
billion, and Blackstone Communications Partners I, the
largest dedicated communications and media fund at over
$2.0 billion.
In addition to Private Equity Investing, The Blackstone
Group's core businesses are Private Real Estate
Investing, Corporate Debt Investing, Marketable Alternative
Asset Management, Corporate Advisory, and
Restructuring and Reorganization Advisory. |
