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Eutelsat to divest stake in Hispasat
Editor
| 13 July 2016
Hispasat 13 July 2016In the latest move to consolidate its finances in the face of what it calls the headwinds of slowing industry-wide momentum, Eutelsat has begun divesting its stake in Spanish satellite company Hispasat.
The satellite company is on a roll at the moment and in June 2016 reported €219.6 million in revenues during 2015, up 9.04% on the year before thanks to an increase in satellite capacity leasing and positive currency fluctuations. €216.4 million of the total revenue came from leasing space capacity, 9.7% more than the previous year.
Nearly two-thirds of total revenue from the leasing space capacity came from the Americas - mostly from the Latin American market - 33.6% from Europe and 0.96% from other regions. LATAM continues to grow as Hispasat’s largest market, with the region’s business representing 55% of the total in 2014.
Eutelsat holds a 33.69% stake in Hispasat through its subsidiary, Eutelsat Services und Beteiligungen GmbH. It will initiate the divestment by exercising the put option granted in 2008 by Hispasat’s majority shareholder, the Abertis Group. Under the terms of the put option agreement, the value of the Hispasat stake will be determined by an independent expert.
At the end of June the satellite operator issued five-year senior unsecured bonds for a total of €500 million to raise long-term financing with a five-year maturity at attractive conditions. CEO Rodolphe Belmer said that action was required for the company as it has become clear in recent months that the traditional businesses within the fixed satellite services sector are facing a context of slowing industry-wide momentum and that the company is facing a lower growth environment.
Editor
| 13 July 2016
Hispasat 13 July 2016In the latest move to consolidate its finances in the face of what it calls the headwinds of slowing industry-wide momentum, Eutelsat has begun divesting its stake in Spanish satellite company Hispasat.
The satellite company is on a roll at the moment and in June 2016 reported €219.6 million in revenues during 2015, up 9.04% on the year before thanks to an increase in satellite capacity leasing and positive currency fluctuations. €216.4 million of the total revenue came from leasing space capacity, 9.7% more than the previous year.
Nearly two-thirds of total revenue from the leasing space capacity came from the Americas - mostly from the Latin American market - 33.6% from Europe and 0.96% from other regions. LATAM continues to grow as Hispasat’s largest market, with the region’s business representing 55% of the total in 2014.
Eutelsat holds a 33.69% stake in Hispasat through its subsidiary, Eutelsat Services und Beteiligungen GmbH. It will initiate the divestment by exercising the put option granted in 2008 by Hispasat’s majority shareholder, the Abertis Group. Under the terms of the put option agreement, the value of the Hispasat stake will be determined by an independent expert.
At the end of June the satellite operator issued five-year senior unsecured bonds for a total of €500 million to raise long-term financing with a five-year maturity at attractive conditions. CEO Rodolphe Belmer said that action was required for the company as it has become clear in recent months that the traditional businesses within the fixed satellite services sector are facing a context of slowing industry-wide momentum and that the company is facing a lower growth environment.
