SkyTerra Communications, Inc. Receives Federal Communications Commission Approval for Merger with Harbinger
March 26 2010 - 11:28PM
Business Wire
SkyTerra (OTCBB: SKYT) today received approval from the
International Bureau of the Federal Communications Commission (FCC)
for the transfer of control of the company to Harbinger.
The previously announced merger agreement between SkyTerra and
Harbinger calls for SkyTerra to be acquired by a new corporation
formed and indirectly wholly-owned by Harbinger Capital Partners
Master Fund I, Ltd. and Harbinger Capital Partners Special
Situations Fund, L.P. At a Special Meeting of Stockholders on March
22, 2010, SkyTerra stockholders overwhelmingly voted to approve the
merger agreement with Harbinger.
With both FCC and stockholder approvals now complete, the
transaction is expected to close as soon as practicable following
the satisfaction of all the conditions to closing.
On a separate item, the FCC’s International Bureau also granted
SkyTerra’s application for a modification of certain terms of its
ancillary terrestrial component (ATC) authorization. This approval
allows SkyTerra to implement its Cooperative Agreement with
Inmarsat and deploy a robust terrestrial mobile broadband network,
which will be integrated with SkyTerra’s satellite network.
“We’re very encouraged that the FCC has already started to
realize the promise of its Broadband Plan,” said Alexander H. Good,
chairman, chief executive officer and president of SkyTerra. “The
FCC said in the Broadband Plan that it wanted to accelerate efforts
to make L-band usable for broadband ATC service. These two orders
do exactly that. Approving the transfer of control brings
Harbinger’s resources and demonstrated operational commitment to
our ATC vision. Approving our modification request makes it
possible for us to provide a full measure of spectrum for mobile
broadband. We at SkyTerra commend the staff for its diligence,
thoughtfulness and professionalism, and Chairman Genachowski for
his leadership on this issue.”
Later this year, SkyTerra plans to launch the first of two
satellites for coverage of the U.S. and Canada, which are expected
to be among the largest and most powerful commercial satellites
ever built.
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. Additional information is available at
http://www.skyterra.com.
Forward-Looking Statements
This news release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act with
respect to SkyTerra's plans to consummate the merger described in
this news release. Such forward-looking statements are based
on current expectations that are subject to risks, uncertainties
and other factors. Such factors include, but are not limited to,
the risk that the conditions to closing contained in the merger
agreement are not satisfied or waived and that there is continued
compliance with applicable Canadian regulatory
requirements. Therefore, no assurance can be given that the
merger will close and that stockholders will receive the $5.00 in
cash per share merger consideration. SkyTerra assumes no
obligation to update or supplement the information in this news
release or any such forward-looking statements. Because the merger
is a “going-private” transaction, disclosure made in connection
with the merger is not entitled to the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995 and any
reference to any claim of reliance on such act contained herein is
hereby excluded.