(Reuters) – Ontario Teachers Pension Plan and Public Sector Pension Investment Board (PSP Investments) are nearing a deal to acquire Loral Space & Communications Inc, according to a source familiar with the matter.
If the parties can reach a deal, the two Canadian pension funds will own Telesat Holdings Inc, the Canadian satellite communications company which Loral owns a 62.8 percent share of and derives almost of all its value from. A deal could be announced as soon as December, the source said.
PSP already has a 35.3 percent economic interest in Telesat and 66.7 percent of the voting power.
Reuters reported that Loral had rejected a previous offer by the two Canadian pension funds over the summer which valued Loral at more than US$80 per share. The parties have not decided on a final price yet and talks could still fall apart, the source said who declined to be identified because the matter is not public.
Bloomberg first reported that the Canadian pension funds were near a deal for about US$85 per share for Loral on Monday. The shares closed up 7.2 percent at US$78.50 on Nasdaq.
Representatives from Loral, Telesat, Ontario Teachers, PSP, and Loral’s top shareholder, MHR Fund Management, could not immediately be reached for comment.
(Reporting by Liana B. Baker; Editing by Bernard Orr)
(This story has been edited by Kirk Falconer, editor of peHUB Canada)
Photo courtesy of Shutterstock