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Intelsat and OneWeb merger called off

The proposed merger between Intelsat and proposed LEO (low Earth orbit) satellite constellation OneWeb has been called off, after a requisite number of bondholders refused to back the move.

{mprestriction ids="1,2"}The planned merger of the companies was initially announced at the end of February pursuant to various conditions being met, including the acceptance of exchange offers by investors.

Had that process been successful, Intelsat and OneWeb would have combined through a merger backed by Japanese company SoftBank, which was set to make a cash investment in exchange for shares of the combined company.

“There were many stakeholders’ interests that needed to be satisfied in this complex transaction.  We are disappointed that our bondholders were unwilling to accept the terms of the exchange offers presented over the course of this process,” said Intelsat CEO, Stephen Spengler.

“Even without a merger of our companies, the pre-existing commercial agreement among Intelsat, OneWeb and SoftBank will continue. Under this agreement, we plan to jointly develop integrated solutions utilising both of our fleets and to act as a sub-distributor to SoftBank for the attractive application segments of mobility, energy, government, and connected car.”

“As we create integrated services for these applications, we expect to accelerate and enhance our goal of unlocking new and larger opportunities in the communications landscape. We remain focused on achieving our operating priorities for 2017, including the continued commercialisation of our Intelsat EpicNG high throughput satellite services.”{/mprestriction}

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