Eutelsat Communications SA (ETL) agreed to acquire Satelites Mexicanos SA for $831 million to expand in the faster-growing Latin American satellite market.
Eutelsat plans to finance the takeover using a bridge loan, and assume net debt of $311 million, Paris-based Eutelsat said today. Privately held Satmex, as the Mexican satellite company is known, will add to Eutelsat’s per-share earnings starting in the 12 months ending June 30, 2015, Eutelsat said.
Satmex operates three satellites that cover 90 percent of the population of the Americas. Demand for satellite services in Latin America is growing at an annual rate of more than 7 percent between 2011 and 2016, Eutelsat said, citing statistics from Euroconsult.
Read full article…