FAIL: Satmex Bondholders
The deal to buy Satmex is off. What seemed like a brilliant acquisition by all accounts, will not go through.
EchoStar Corp. and MVS Comunicaciones SA ended their agreement to buy Satelites Mexicanos SA for $267 million after the Mexican satellite operator’s bondholders objected to the deal.
Satmex, as the company is known, failed to get approval from holders of a majority of bonds within the 17 days allotted under the agreement, EchoStar said Tuesday in a U.S. regulatory filing.
El Economista suggests they’re holding out for a minimum of $500 million. Not sure it’s such a good idea to wait. If Satmex-5 fails, how much would the company be worth then? I say cash out now while you still can.
The Mexican government owns 20% of the company, so it would be interested to get their take on this.
