The U.S. Federal Communications Commission announced Monday it has approved the merger of a subsidiary of Intelsat, Ltd., with PanAmSat Holding Corp.
Noting that the transaction was unopposed, the FCC commissioners found that "the transaction will be in the public interest," and they therefore granted Intelsat's application for a transfer of control of PanAmSat's FCC licenses.
No other regulatory approvals are required, in the United States or elsewhere, prior to the closing of the transaction.
Intelsat announced in a news release it is planning on completing the PanAmSat transaction on July 3.
"The closing of the merger will open a new chapter for our industry and our customers, who will benefit from expanded services and improved network flexibility and resilience as we bring together these two great companies," said David McGlade, Intelsat's chief executive officer.
Intelsat and PanAmSat announced their merger agreement on August 29, 2005. Under the agreement, Intelsat will acquire PanAmSat for $25 per share in cash, or approximately $3.2 billion in the aggregate – plus a pro rata share of undeclared regular quarterly dividends, if any, for the quarter in which the merger is completed.
In addition, $3.2 billion in debt of PanAmSat and its subsidiaries will remain outstanding or be refinanced. Closing of the transaction is subject, among other things, to the receipt of financing by Intelsat.
Intelsat is a global communications provider offering flexible and secure services to customers in over 200 countries and territories.
For 40 years, Intelsat has distributed video, voice and data for television and content providers, government and military entities, major corporations, telecommunications carriers and Internet service providers.
