Arabsat acquires Hellas-Sat for expansion into Europe

Arabsat announced its successful acquisition of 99.05 percent equity participation in Hellas-Sat Consortium following a successfully signed agreement with the Hellenic Telecommunication Organization (HTO) telecom group.

As the exclusive user of the 39 degrees East orbital slot, Hellas-Sat controls all the radio frequencies from the Hellenic Republic and its neighbor, the Republic of Cyprus. Its Hellas-Sat 2 satellite covers Europe, African, and the Middle East.

In exchange for the HTO’s blessing, Arabsat will be forking over 208 million euros as an aggregate consideration. 157 million euros of that amount represents the 99.05 percent of Hellas-Sat’s enterprise value. The remaining 53.4 million euros is equal to the estimated cash held by Hellas-Sat when the transaction is completed during the second quarter of 2013.

The Hellas-Sat acquisition is part of Arabsat’s expansion into new markets as it transforms itself from a regional satellite operator to a global one, a process scheduled to be completed by 2020. Arabsat is also preparing three new communications satellites for launch in 2016.

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