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SES raises €900m to take full control of O3b Networks

O3b NetworksSatellite operator SES has raised €908.8 million to fund its acquisition of the part of broadband satellite operator O3b Networks that it do3s not already own.

SES will issue 39,857,600 million new Fiduciary Depositary Receipts (FDRs) at a price of €19. The number of new FDRs represents 11.6% of the existing number of the company’s total Class A shares.

SES will use the proceeds raised to fund the total consideration of USD 730 million to increase its ownership of O3b to 100%. The transaction is subject to regulatory approvals which are expected to be completed during H2 2016. SES will also use around US$300 million to repay O3b’s most expensive debt facilities, leading to a reduction in annual financing costs after initially covering any repayment charges.

O3b operates a fleet of medium Earth orbit satellites, with 12 currently in orbit and further satellites in the pipeline. The O3b constellation is designed to deliver broadband connectivity in the Ka-band.