On November 24, 2020, Telesat Canada announced it entered into an agreement with Loral Space & Communications Inc. (Loral) and Public Sector Pension Investment Board (PSP Investments) pursuant to which Telesat Canada and Loral will become subsidiaries of Telesat Corporation (Telesat), a new publicly traded Canadian incorporated and controlled company. The shares of Telesat will be listed on the Nasdaq Global Select Market, the market on which Loral is currently listed, and Telesat is also considering a listing on a Canadian stock exchange in connection with the closing of the transaction in 2021. Telesat Corporation will be headquartered in Ottawa and led by Telesat Canada’s Chief Executive Officer Daniel S. Goldberg. Telesat will remain Canadian-controlled. The transaction is expected to close in the second or third quarter of 2021, subject to required regulatory approvals, the approval of Loral’s stockholders (including a majority of Loral’s stockholders not affiliated with MHR Fund Management, PSP Investments or other transaction participants) and other customary conditions.
MHR Fund Management LLC is a private equity firm focusing on leveraged buyout and distressed securities transactions in the United States, specializing in turnaround, buyouts and undervalued middle-market companies, particularly in the entertainment, communications and energy sectors.
Telesat Canada provides satellite-delivered communication solutions to broadcast, telecom, corporate, and government customers worldwide.
Loral Space & Communications Inc., offers satellite-based communications services to the broadcast, telecom, corporate, and government customers worldwide.
Osler, Hoskin & Harcourt LLP advised MHR Fund Management LLC; a stockholder of Loral Space & Communications Inc., with a team consisting of Frank Turner, Kelsey Armstrong (Corporate), Kaeleigh Kuzma, Peter Glossop and Danielle Chu (Competition/Antitrust & Foreign Investment).