US firm is Harbinger for Inmarsat buyout proposal

US-based hedge fund Harbinger Capital has confirmed its designs on UK satellite operator Inmarsat, using its holding in US satellite firm SkyTerra Communications as a platform for the bid.

Harbinger said it will provide $500m in funding for SkyTerra’s business plan as part of an agreement that could see the possible combination of SkyTerra and Inmarsat.

The US equity firm currently owns approximately 28.8 per cent of Inmarsat and around 48.43 per cent of SkyTerra.

Upon completion of the proposed deal, it is expected that Harbinger will own over 85 per cent of the combined Inmarsat/SkyTerra entity.

Alexander Good, SkyTerra’s chairman, CEO and president, said, “The combination of SkyTerra and Inmarsat, assuming financial terms can be reached, makes a great deal of strategic and operational sense.  It would greatly enhance spectrum efficiency and North American L-Band spectrum while providing a foundation for innovation in the global mobile satellite industry. Such innovation would include exciting new applications while preserving essential national defence, public safety, safety at sea, and aeronautical safety services. The combination would also provide opportunities for greater efficiencies and scale benefits and coordination in the pursuit of next generation integrated satellite-terrestrial networks, products and applications.”