[Satellite TODAY Insider 11-09-12] African communication industry firms Convergence Partners, Altirah Telecoms and a consortium of South African investors have sold the group’s interest in the New Dawn to the project’s initial majority shareholder, joint venture partner and FSS satellite operator Intelsat, Convergence Partners confirmed Nov. 9.

Intelsat is now the sole owner and operator of the satellite after buying Convergence Partners’ 25.1 percent stake in the project.

The New Dawn joint venture was established in December 2008 with an aim to acquire, own and operate Intelsat’s New Dawn satellite stationed at the 33 degrees East orbital slot. The satellite provides services in sub-Saharan Africa.  Intelsat New Dawn completed construction in 2010 and was launched in 2011. 

Intelsat launched commercial services on the operational Ku-Band payload this past June to supply critical communications infrastructure for African customers and support the continued development and growth of the region. The satellite also hosts the MCPC platform, which aims to address the growing digital television market in the region.

Convergence Partners Chairman Andile Ngcaba said that the partnership with Intelsat was created to enable the parties to achieve specific objectives, but added that a technical anomaly that occurred on the satellite preventing its reflectors from deploying properly precluded the group from fully realizing its broader objectives.

“The venture was a landmark deal for Africa and fundamentally changed the way Africans participate in this critical sector and, as such, remains something we are very proud of,” Ngcaba said.

  According to the partners, the $250 million Intelsat New Dawn project was funded through approximately 15 percent equity and 85 percent debt. African institutions provided around 90 percent of that funding, with Intelsat investing the remaining balance.

Despite setbacks, Ngcaba said he and fellow investors are still committed to African satellite and telecommunications development.

“Convergence Partners maintains its long-term commitment to the African space communications sector and is creating further ventures in this regard, in order to assist in ensuring strong representation of Africans in all aspects of the industry,” said Ngcaba. “The development of these opportunities meets the twin objectives of Convergence Partners, being the generation of attractive financial returns as well as acceleration of the socio-economic development of the continent.”