MEDIA RELEASE PR35351
Telesat completes transfer of its interests in Telstar 10/Apstar 2r back to APT Satellite Company
OTTAWA, CANADA and APT SATELLITE, HONG KONG, July 9 /CNW-AsiaNet/ --
Longtime Asian satellite operator has now assumed full commercial control
of Telstar 10/Apstar 2R
Telesat Canada, the world's fourth largest fixed satellite services operator, and APT Satellite
Company Limited, a wholly-owned subsidiary of APT Satellite Holdings Limited, announced today
that they have closed a transaction pursuant to which Telesat has transferred its leasehold
interests in Telstar 10 to APT, along with certain customer contracts related to the satellite. As
announced on June 1, 2009, the total price was approximately US$69 million.
"The transfer of our interests in Telstar 10 to APT makes strong
strategic sense for a number of reasons, including APT's long-standing
responsibility for the satellite's operation, the complex regulatory
environment associated with the satellite, and the upcoming requirement to
replace Telstar 10," said Dan Goldberg, President and CEO of Telesat.
APT and Telesat have assured current users of Telstar 10 that they will
continue to receive the same high quality services they have enjoyed to date,
and both companies will endeavor to ensure a seamless and smooth transition
for their customers.
"The satellite, also known as Apstar 2R, is one of the leading satellites
in the Asian market," said Cheng Guangren, Executive Director and President of
APT. "This agreement is the right strategic move for our company given APT's
growth plans and the attractive base of customers who rely on Apstar 2R. We
look forward to serving them in the years to come and working with them to
expand our presence in Asia and other satellite service markets."
Headquartered in Ottawa, Canada, with offices and facilities around the
world, Telesat is the fourth-largest fixed satellite services operator. The
company provides reliable and secure satellite-delivered communications
solutions to broadcast, telecom, corporate and government customers. Telesat
has a global state-of-the-art fleet of 11 satellites with another satellite
under construction, and manages the operations of 13 additional satellites for
third parties. Telesat is privately held. Its principal shareholders are
Canada's Public Sector Pension Investment Board and Loral Space &
Communications Inc. (NASDAQ: LORL).
As announced previously, Telesat continues to be in discussions regarding
the potential sale of its interests in another of its international
satellites. However, Telesat cannot at this time assess the probability of
concluding any further transaction under discussion or under what terms,
including price, the satellite may be sold.
APT SATELLITE HOLDINGS LIMITED (the "Group") is listed on The Stock
Exchange of Hong Kong Limited. Having started its operation in 1992, the Group
provides high-quality services in satellite transponders, satellite
communications and broadcasting services for the broadcasting and
telecommunications sectors in Asia Pacific, Europe and the United States. The
Group currently operates the APSTAR systems, including Apstar 5, Apstar 6, and
Apstar 2R, through its own Satellite Control Center in Tai Po, Hong Kong. In
line with its business development strategies, the Group also provides
satellite broadcasting services and telecommunications services to customers.
(Stock code: 1045)
Telesat Safe Harbour Statement
This news release contains statements that are not based on historical
fact and are "forward-looking statements". Actual results may differ
materially from the expectations expressed or implied in the forward-looking
statements as a result of known and unknown risks and uncertainties. Detailed
information about some of the known risks and uncertainties is included in the
"Risk Factors" section of Telesat's final prospectus filed with the United
States Securities and Exchange Commission (SEC) on June 29, 2009. Readers are
specifically referred to that document, as well as Telesat's other filings
Known risks and uncertainties include but are not limited to: (1) financial
risks, including economic downturns, restrictions imposed by covenants
contained in the agreements governing Telesat's debt, Telesat's leverage,
volatility in exchange rates, and Telesat's dependence on a few large
customers for a significant proportion of its revenue; (2) risks associated
with operating satellites and providing satellite services, including
satellite construction or launch delays, launch failures, in-orbit failures or
impaired satellite performance, the ability to obtain or renew satellite
insurance at all or on reasonable terms, and competition from other providers
of telecommunications services; (3) risks associated with domestic and foreign
government regulation; and (4) other risks, including potential conflicts of
interest with Telesat's significant shareholders, litigation, and market
risks. The foregoing list of important factors is not exclusive. The
information contained in this news release reflects Telesat's beliefs,
assumptions, intentions, plans and expectations as of the date of this news
release. Telesat disclaims any obligation or undertaking to update or revise
the information herein.
APT Forward-looking Statement
This news release may contain statements that are not based on historical
fact and are "forward-looking statements". Statements in this release
concerning the beliefs, expectations, intentions, future events, future
performance, business prospects and business strategy, including statements
regarding projections for 2009 and beyond, are based on several assumptions.
If any of these assumptions are not satisfied or prove to be incorrect,
actual results could differ materially from those indicated in the
forward-looking statements, depending on a variety of factors including, but
not limited to, APT's ability to implement its business strategy and
competition in the market. The information presented in this release reflects
APT's expectations as of the date of this release. APT undertakes no
obligation to update or revise the information herein.
SOURCE: Telesat Canada; Telesat Holding Inc.
CONTACT: Vanessa Brûlé,
Telesat,
(613) 748-8700 ext. 2407, (vbrule(at)telesat.com);
Dr. Brian Lo,
APT Satellite Holdings Limited,
Tel: + 852 2600 2100, (brianlo(at)apstar.com)/
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