Apax, Canada pensions in talks for stake in satellite comms company Telesat

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satellite-dishsq_lrgPrivate equity house Apax Partners and a pair of Canadian pension funds are in talks about buying the majority stake in satellite communications business Telesat from Loral Space & Communications.

The trio need the green light from Canada’s Public Sector Pension Plan according to Reuters, which said the LP held a 35.3 per cent stake and had 66.7 per cent of the voting power.

Loral currently holds 62.8 per cent of the stock but has only 33.3 per cent of the voting rights.

Canada’s Public Pension Investment Board and the Ontario Teachers’ Pension Plan have teamed with Apax to buy the stake, the report added.

The buyout deal could reach $7bn according to Reuters sources, making it the second largest this year behind Cerberus Capital’s $9.4bn merger of Albertsons with Safeway.

Loral and PSP attempted to sell Telesat three years ago for up to $7bn but could not agree a price with trade or private equity buyers.

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