The FCC approved a $16.4 billion transfer of control of Intelsat ...
The FCC approved a $16.4 billion transfer of control of Intelsat from a private equity group controlled by Apax Partners to Serafina Partners, a unit of BC Partners. The deal includes $11.4 billion in Intelsat debt. “No party has…
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challenged the basic qualifications of Serafina, and nothing has come to our attention that would disqualify Serafina on the grounds that it lacks the technical, legal or other basic qualifications necessary to be a commission licensee,” the FCC said. The transaction won’t “change the competitive landscape in the fixed satellite services market,” it added. The FCC conditioned the transaction on Serafina’s upholding national security commitments it made in October (CD Oct 23 p12). Intelsat and Serafina told federal agencies they would keep living up to agreements made in the Zeus and PanAmSat transactions. Intelsat was pleased with the FCC’s action. “It came in almost to the day of when we were hoping it would,” a spokeswoman told us. FCC Commissioner Michael Copps didn’t object to the transaction but complained the agency hadn’t done a comprehensive review of the effect of private equity deals on the communications industry. “We need to start looking at these important questions and we need to do so quickly,” he said. “We simply cannot discharge our public-interest responsibilities in a piecemeal fashion.” Intelsat awaits approval by the Bermuda Monetary Authority, which it expects “in the near future,” spokeswoman said. The terms call for the deal to close within 24 business days of approval in Bermuda.