SKYTERRA Announces Completion of Acquisition BY HARBINGER CAPITAL PARTNERS
30 March 2010 - 6:16AM
Business Wire
SkyTerra Communications, Inc. (OTCBB: SKYT) today announced the
completion of its acquisition by an affiliate of Harbinger Capital
Partners (“Harbinger”). The take-private transaction was
accomplished via merger for approximately $262.5 million in cash,
or $5.00 per share, pursuant to a previously disclosed merger
agreement (the “Agreement”) entered into on September 23, 2009.
The all-cash merger represents an approximately 56 percent
premium over the average closing price of SkyTerra’s common stock
for the 30 days ended September 22, 2009, the last day before the
announcement of entry into the Agreement. After taking into account
SkyTerra’s outstanding debt and securities held by Harbinger’s
affiliates, the transaction represents a total enterprise value of
approximately $1.849 billion.
Approximately 91 percent of the outstanding shares were voted in
favor of the Agreement. It was also approved by approximately 82
percent of the shares other than shares owned by Harbinger’s
affiliates, any director or officer of SkyTerra and any of their
respective affiliates and the Escrowed Shares (as defined in the
Agreement).
About Harbinger Capital Partners
Harbinger Capital Partners was founded in 2001. Harbinger is led
by its Chief Investment Officer, Chief Executive Officer and Senior
Managing Director, Philip Falcone, who has over 20 years of
investment experience across an array of market cycles. The
Harbinger Team is disciplined and value oriented, focusing on alpha
generating ideas that are uncorrelated to investment cycles. The
firm combines a flexible, innovative approach to uncovering
opportunity with a thorough investment process. Each investment
undergoes rigorous fundamental research, extensive vetting, and
seeks an identifiable catalyst for value realization. Harbinger
regards risk monitoring as a critical component of the investment
process and actively monitors risk at three levels: portfolio,
position and operations. The Harbinger Team offers several
strategies which emphasize different opportunities, each based on
the same time-tested fundamental investment and due diligence
processes.
About SkyTerra
SkyTerra is North America’s leading developer and supplier of
mobile satellite communications services (MSS). Since 1996 SkyTerra
has been providing reliable wireless voice, two-way radio and data
services for a wide range of customers across North America,
northern South America, Central America, the Caribbean and Hawaii
via its two existing MSAT satellites. SkyTerra is at the forefront
of the development of the first integrated satellite-cellular
communications network, which will provide seamless, transparent,
interoperable and ubiquitous wireless coverage of North America
using conventional handsets. It has extensive patents on the
technology and holds the first FCC license to provide these
services.