Arabsat is to acquire OTE-owned satellite operator Hellas Sat for €208 million.
Hellas Sat operates the HellasSat2 satellite, giving coverage of the Middle East and South Africa from 39° East. Approximately 2.5 million homes have antennas pointed at the position.
The deal with Arabsat is expected to close in the second quarter. The €208 million price tag comprises the value of Hellas Sat, amounting to €157 million, which corresponds to seven 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. In addition, OTE will receive €7 million as dividends. Arabsat is acquiring the Cyprus-based operator via a Cyprus-based subsidiary.
The Hellenic Aerospace Industry (HAI), one of the minority shareholders of Hellas Sat, remains in the new shareholding structure of the company, with certain preemption rights.
OTE’s chairman and CEO, Michael Tsamaz, said: “We achieved a significant agreement, which ensures the best possible and advantageous terms while adding value to all shareholders. The Greek and Cyprus governments partner with a reputable operator, who can undertake the necessary investments to retain the sovereign rights of Greece and Cyprus in space and safeguard their position as space-faring nations. Hellas Sat is being sold to a leading satellite communications operator with substantial growth prospects and with a keen interest to develop further its presence in the economies of Greece and Cyprus. OTE divests Hellas Sat at a satisfactory price, allowing us to focus on our core business.”