Inmarsat To Kick Off Round Of Satellite Privatizations
By ANTHONY DOVKANTS
Dow Jones Newswires
LONDON -- Inmarsat[ inmarsat.org & via-inmarsat.org ]is about to break free of its bureaucratic shackles and take its first steps as a privatized satellite company.
The business, which was formed by a group of 28 governments in 1979, Thursday will lead a wave of privatization's within the satellite industry when its shareholders meet to elect a board.
The move marks the beginning of a two-year plan to bring Inmarsat to the stock market.
Inmarsat will become the first of three intergovernmental satellite businesses to be privatized.
Intelsat and Eutelsat are expected to follow by 2001.
The London-based mobile satellite communications group is also going private in a bid to raise funds for its $2 billion project Horizon, which is a plan to provide Internet services via satellites.
Since its formation in 1979 under an intergovernmental treaty to provide communications for ships, there have been restrictions on the way Inmarsat's shareholders were allowed to invest in the business.
BT, which has a 9% holding in Inmarsat, would only have ever been able to invest 9% into any given program.
The restructuring of Inmarsat means that companies will be able to take bigger or smaller positions in a project.
The company's sales increased 5.8% to $401 million in 1998 from $378 million and earnings before interest, taxes, depreciation and amortization rose 4.9% to $321 million from $306 million.
As part of the privatization, major shareholders such as British Telecommunications PLC (BTY), Comsat Corp. (CQ) of the U.S., France Telecom (F.FTL) and Telstra (TLS), of Australia, will be able to trade in Inmarsat shares amongst themselves.
BT and other businesses were appointed by their respective governments to run and represent their country's interests at Inmarsat.
Inmarsat, which is behind communications used by airlines, merchant ships and news media, said the board will meet Monday for its first meeting.
The company isn't disclosing the nominees for election to the board.
-By Anthony Dovkants;44-171-832-9059;adovkants@ap.org
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