[Satellite TODAY 09-24-09] SkyTerra has entered into a definitive merger agreement to be acquired by a new corporation formed by Harbinger Capital Partners and its affiliates, which will see SkyTerra transform into a private company, SkyTerra announced Sept. 23.
    The new Harbinger entity will pay $5.00 in cash per share – 56 percent more than the average closing price for each of SkyTerra’s outstanding shares of common stock not held by Harbinger or its affiliates. Harbinger and its affiliates together hold about 48 percent of SkyTerra’s outstanding voting common stock and about 49 percent of SkyTerra’s voting and non-voting common stock combined.
    The merger agreement has been approved by a special committee of evaluators, which included Morgan Stanley, Skadden, Arps, Slate and Meagher & Flom. The transaction is subject to approval by the holders of a majority of SkyTerra’s outstanding voting common stock and to regulatory approvals, including approval of the U.S. Federal Communications Commission, and other closing conditions.
    SkyTerra already has filed with the U.S. Securities Exchange Commission and anticipates that the transaction will close in late 2009 or early 2010.

Related Stories-

SkyTerra Applies for $37 Million in Broadband Stimulus Funding   Satellite Today   August 20, 2009
[Satellite TODAY 08-20-09] SkyTerra Safety Access LLC filed an application with the U.S. National Telecommunications and Information Administration (NTIA) on Aug. 18 to request $37 million to deploy two new wireless devices for public safety…

Funding Issues Create Industry Anxiety   Satellite Today   March 23, 2009
The ability to access funding for business plans has become a lot tougher than it was just 12 months ago, casting a huge shadow not just over the satellite sector but over industries around the globe. The impact already is being felt, with…

Hedge Funds and the Satellite Industry (Part II)   Via Satellite   October 1, 2008
Last month, we reviewed the preliminary "Master Contribution and Support" agreement by hedge fund Harbinger Capital Partners, which has invested broadly in the mobile satellite service (MSS) sector to acquire leading MSS operator Inmarsat…