Status: Pending Filing
Acquirer: Telesat Canada (Canada); Public Sector Pension Investment Board (Canada)
Acquired: Loral Space & Communications Inc. (U.S.)
Value: Undetermined
Industry Tags: Satellites; Telecommunications
On November 23, 2020, Loral Space & Communications Inc., a publicly traded (NASDAQ:LORL) satellite communications company, “entered into a definitive agreement with Public Sector Pension Investment Board (PSP Investments) and Telesat Canada (Telesat) to combine Loral and Telesat into a new Canadian public company (New Telesat). Upon closing of the transaction, the stockholders in Loral, together with PSP Investments and certain current and former management shareholders of Telesat, will beneficially own all of the equity in New Telesat in approximately the same proportion as their current, indirect ownership in Telesat.” (Press Release, Loral Enters into Agreement with PSP Investments and Telesat to Combine Loral and Telesat into a New Public Company, Nov. 23, 2020.) Following completion of the merger and related transactions, the Public Sector Pension Investment Board will have rights to designate three directors to the New Telesat board of directors. (Loral Space & Communications Inc. Form 8-K, Nov. 23, 2020, SEC Filing.) The parties are required to use reasonable best efforts to obtain CFIUS Approval. (See Section 8.5(d), Transaction Agreement and Plan of Merger, Loral Space & Communications Inc. Form 8-K, Ex-2.1, Nov. 23, 2020, SEC Filing.) “On March 2, 2021, the parties submitted to CFIUS a joint voluntary notice in draft form with respect to the Transaction. On April 9, 2021, the parties submitted to CFIUS a final joint voluntary notice with respect to the Transaction.” (Loral Space & Communications Inc. Schedule 14A, June 30, 2021, SEC Filing.)
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