[March 18, 2010] EchoStar Satellite and MVS Comunicaciones withdraw acquisition of Satelites Mexicanos (Satmex) Tweet Mar 18, 2010 (Datamonitor Financial Deals Tracker via COMTEX) -- EchoStar Satellite Services, L.L.C. and MVS Comunicaciones have withdrawn the proposed acquisition of Satelites Mexicanos S.A. de C. V. (Satmex), a provider of satellite services, after the Satmex's bondholders objected to the deal. Satmex failed to get approval from holders of a majority of bonds within the 17 days allotted under the agreement. Both MVS Comunicaciones and Satmex are based in Mexico. EchoStar Satellite Services is a US-based provider of provides a reliable network for aggregation and distribution of video, audio and data and a wholly-owned subsidiary of EchoStar Corporation, while MVS Comunicaciones is engaged in the radio, television, broadband and publishing businesses. Announcement (February 26, 2010): EchoStar Satellite Services and MVS Comunicaciones have agreed to acquire all of the outstanding shares of Satmex. The transaction is valued at approximately $374 million. The consideration will consist of a $267 million of cash payment and up to $107 million of cash on Satmex's balance sheet at closing. The transaction is conditioned upon the completion of the offer to purchase the senior secured notes of Satmex. The transaction is expected to close early in the third quarter of 2010. In connection with the sale, Satmex intends to offer to purchase all of its outstanding senior secured notes for cash upon the closing of the sale of the Satmex shares. The offer to purchase the senior secured notes and the sale of the shares are subject to the receipt of certain consents from the holders of the senior secured notes, including consents to modify or eliminate most of the covenants in the indentures under which the senior secured notes have been issued, and various corporate approvals. The consummation of the sale of the Satmex shares is conditioned upon successful completion of the offer to purchase the senior secured notes. Deutsche Bank Securities, Inc. and Peter J. Solomon Company are acting as financial advisors to EchoStar, while Perella Weinberg Partners LP is acting as financial advisor to Satmex. Deal Value (US$ Million) 374 Deal Type Acquisition Sub-Category 100% Acquisition Deal Status Terminated: 2010-03-17 Deal Participants Target (Company) Satelites Mexicanos S.A. de C. V. Acquirer 1 (Company) EchoStar Satellite Services, L.L.C. Acquirer 2 (Company) MVS Comunicaciones Deal Rationale The Satmex acquisition provides EchoStar with a footprint over Mexico and South America and presents it the opportunity to serve a growing global demand for satellite services. EchoStar will leverage its satellite operations and uplink expertise in North America to expand its fixed satellite services throughout the Americas, including the delivery of satellite Internet to rural communities. [ Back To TMCnet.com's Homepage ]