Medcom launches hostile bid for Satmex

27 Mar 2006

Mexican satellite operator Medcom Sat has made a hostile bid to buy its financially troubled rival Satmex for USD350 million, according to BNamericas quoting local press. Satmex is currently undergoing a debt restructuring process for more than USD800 million of liabilities, of which USD523 million is in default. Medcom, a unit of US satellite provider SES Americom, is looking to purchase at least 80% of shares in Satmex, which is owned by a combination of the government, Servicios Corporativos and minority shareholders. As part of ongoing restructuring negotiations, an 80% stake Satmex has been earmarked as compensation for bondholders. The bid was made on 20 March with financial assistance from Citigroup.