TerreStar Sells Remaining Shares in SkyTerra
[Satellite Today 09-18-09] TerreStar Corp. has sold its remaining shares in SkyTerra Communications to Harbinger Capital Management and other parties, TerreStar announced Sept. 17.
Harbinger purchased 23.6 million shares of TerreStar for $97 million, while other parties bought the remaining 6.3 million shares for $26 million. The proceeds will be used by TerreStar for working capital and general corporate purposes and are expected to meet TerreStar’s capital needs into 2010, the company said.
TerreStar also granted to SkyTerra the right to exchange 4.2 million shares, or about 11 percent of TerreStar Networks Inc. held by SkyTerra for shares of TerreStar Corp. TerreStar also would receive the 3.1 million shares of subsidiary TerreStar Global Ltd. owned by SkyTerra. The exchanges permit TerreStar to consolidate its ownership of TerreStar Networks and TerreStar Global.
Since July, Harbinger has been involved in an effort to buy Inmarsat and combine it with SkyTerra, the parent company of Mobile Satellite Ventures. Harbinger is Inmarsat’s largest shareholder with a 28 percent stake and also holds 48 percent of Mobile Satellite Ventures.