Intelsat-PanAmSat OK with FCC


The Federal Communications Commission approved Intelsat Ltd.’s $3.2 billion purchase of PanAmSat Holding Corp., officials said Tuesday.

Noting that the merger was unopposed, the commissioners found that “the transaction will be in the public interest,” and they therefore granted Intelsat’s application for a transfer of control of PanAmSat’s FCC licenses.

No other regulatory approvals are required, in the United States or elsewhere, prior to the closing of the deal.

Intelsat said it plans to complete the PanAmSat transaction July 3.

“The FCC recognized the many benefits of this merger in finding it to be in the public interest,” Intelsat executive vice president and general counsel Phillip Spector said in a prepared statement. “We are appreciative that so many of our customers filed comments with the FCC in support of the merger.”

Intelsat and PanAmSat announced their merger pact last Aug. 29. Under the agreement, Intelsat will acquire PanAmSat for $25 per share in cash, or about $3.2 billion in the aggregate (plus a pro rata share of undeclared regular quarterly dividends, if any, for the quarter in which the merger is completed).

In addition, $3.2 billion in debt of PanAmSat and its subsidiaries will remain outstanding or be refinanced.

Closing of the transaction is subject, among other things, to receipt of financing by Intelsat.