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SES moves to complete O3b acquisition

Satellite operator SES has exercised its call option on the stock of O3b Networks, and has now offered to acquire all the remaining shares of O3b, having reached agreement with all other shareholders and gained the necessary regulatory approvals. The completion of the transaction is expected on 1 August 2016.

{mprestriction ids="1,2"}SES will pay US$730 million to directly increase its ownership of O3b from 49.1 per cent to 100 per cent, using proceeds from the company’s recent equity raising.

O3b’s expected annualised revenues per satellite range between US$32 million and US$36 million. SES expects to generate an additional €53 million of annual synergies in 2017, increasing to €106 million annually by 2021.

On completion, SES says it will also consolidate US$1.2 billion of O3b debt and aims to restructure it to reduce annual costs.

“Moving to 100 per cent of O3b will be highly accretive for SES, both from a strategic and economic standpoint. In addition to exceeding SES’s investment hurdle rates, full consolidation accelerates the delivery of important transformational and combinational synergies that are only possible with 100 per cent ownership,” said Karim Michel Sabbagh, president and CEO of SES.{/mprestriction}

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