Luxembourg-based satellite group SES has received all necessary regulatory approvals for its takeover of O3b networks, enabling it to exercise its call option and offer to acquire the remaining shares and warrants of the target company. The other shareholders have agreed to accept the SES offer, non-tendering warrant holders will be cashed out, and completion of the transaction and full consolidation of O3b is expected on 1 August 2016. SES will pay USD730 million to directly increase its fully diluted ownership of O3b from 49.1% to 100%, using proceeds from the company’s recent equity raising. On completion, SES will consolidate USD1.2 billion of O3b net debt.
SES says that ‘the consolidation of O3b’s unique and global high throughput, low latency solution expands SES’s global reach and satellite-enabled solutions, augments SES’s differentiated capabilities in data-centric verticals, and enhances SES’s foundations for sustainable growth.’