SES S.A.: Consolidation With Intelsat Creates Satellite Behemoth

Aug. 01, 2024 7:07 AM ETSES S.A. (SGBAF) Stock4 Comments3 Likes
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Kinix Research
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(20min)

Summary

  • SES S.A. completed the C-Band spectrum monetization effort, acquired Intelsat for $3.1 billion, and rolled out the O3b mPower constellation.
  • The Intelsat acquisition makes SES S.A. the largest non-LEO satellite operator in the world and dominant in the mobility network industry.
  • Mid-band spectrum assets and potential monetization add significant value to the combined company.
  • A special dividend (5% yield) and buyback plan (6% yield) in 2024 add to the nominal 10% dividend yield on the pro-forma stock at less than 5x the EBITDA multiple.

bjdlzx/E+ via Getty Images

My previous article in January 2024 was an update reflecting on the operational milestones achieved by SES S.A., particularly completion of the C-Band spectrum monetization effort and roll-out of the medium-earth orbit (MEO) O3b mPower constellation. Like the sell-side

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