Arabsat acquires majority stake in Hellas-Sat

Arabsat is pleased to announce that it has signed an agreement with the Hellenic Telecommunication Organization (”OTE”), one of the largest telecom groups in South Eastern Europe, for the acquisition of its 99.05% equity participation in Hellas Sat Consortium Ltd (“Hellas Sat”).

The share purchase agreement was signed upon an aggregate consideration of €208 million, representing the 99.05%, of:

• An enterprise value of Hellas Sat, amounting to €157 million, which corresponds to 7 times the EBITDA of Hellas Sat for 2012, and
• the cash held by Hellas Sat on the date of completion of the transaction, estimated at €53.4 million.

Hellas Sat has the exclusive use of the orbital position of 39° East and all associated radiofrequencies from the Hellenic Republic and the Republic of Cyprus. The company is the operator of the Hellas-Sat 2 satellite, one of the most powerful satellites with wide European coverage. Apart from Europe, the satellite Hellas Sat 2 covers the Middle East and South Africa and has a portfolio of over 100 customers in 26 countries.

The transaction was conducted through Arabsat Cyprus Ltd., a 100% subsidiary of Arabsat, and is expected to be completed by Q2 2013 after all necessary procedures have been finalized and is subject to approval by the competent authorities.

Khalid A. Balkheyour, the President & CEO of Arabsat commented: “This step outlines Arabsat’s determination to pursue its strategic plan to grow its resources in terms of expanding to new orbital slots and new frequency rights, and to enter new markets. In 2012, Arabsat has presented before the satellite industry its vision to move from regional to global and become one of the top 5 satellite operators in the world by the year 2020. This transaction, in addition to the new 6th satellite generation program encompassing the design, manufacturing and launch of 3 new satellites from now until 2016 proves that Arabsat is on the right track to achieve its vision”.

Mr. Balkheyour also noted: “Our commitment to sustain and grow the business in Greece and Cyprus will manifest itself through the rapid design, manufacturing and launch of the new satellite, HS-3, which we envision to be one of the largest satellites in Europe. This would enhance Hellas Sat’s competitive advantage at its hotspot at 39° East with more capacity for existing and future customers. I want also to thank our partners, The Hellenic Aerospace Industry (HAI), one of the current minority shareholders of Hellas Sat, that will remains in the new shareholding structure of the company ”.

OTE, the seller is the largest telecommunications provider in the Greek market and, together with its subsidiaries, forms one of the leading telecom Groups in South-eastern Europe. OTE is among the five largest listed companies, with respect to capitalization, in the Athens Stock Exchange and is also listed in the London (LSE) Stock Exchange. The OTE Group offers a full range of products and services, from broadband services, fixed and mobile telephony, to high-speed data communications and leased lines services.

Arabsat extends its appreciation to its financial and legal advisors led by Renaissance Capital and Generation Alfa and which included: Pamboridis LLC, DLA Piper and KPMG Greece.

About Hellas Sat

Hellas Sat was founded in 2001 and is the exclusive manager of the Greek and Cypriot satellite Hellas-Sat 2. Hellas Sat 2 is one of the most powerful satellites with wide European coverage and was successfully launched in May 2003. Apart from Europe, the satellite Hellas Sat 2 covers the Middle East and South Africa. It has over 100 customers in 26 countries, which are active in the covered areas by offering a wide range of satellite services, including satellite television, news coverage, satellite internet and digital satellite services, enhancing strategically the orbital position of 39° East, to which approximately 2.5 million antennae of subscribers are facing today. Hellas Sat’s commitment is the constant provision of comprehensive, reliable and top quality satellite services. The company employs 65 scientists in Greece and Cyprus, and the satellite is fully controlled by TT&C stations in Greece and Cyprus. Hellas Sat 2012 revenues amounted to €31 million. For more details visit:

About Arabsat

Founded in 1976, Arabsat has been serving the growing needs of the Arab world for over 30 years. Now one of the world’s top satellite operators and by far the leading satellite services provider in the Arab world, it carries over 450 TV channels, 160 radio stations, 3 Pay-TV networks and wide variety of HD channels reaching tens of millions of homes in more than 80 countries across the Middle East, Africa, Europe—and way beyond around the world—including an audience of over 170 million viewers in the Middle East and North Africa (MENA) region alone tuned into Arabsat’s video “hotspot” at 26° East.
Operating a growing fleet of owned satellites at the 20° East, 26° East, 30.5° East and 34.5° East positions of the geostationary orbit, ARABSAT is the only satellite operator in the MENA region offering the full spectrum of Broadcast, Telecommunications and Broadband services. This capacity will continue to expand with the launching of new satellites, making the ARABSAT satellites’ fleet the youngest in the region. —

For information:
Please contact Saad Al Tehaif - ARABSAT PR & Media Manager

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