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

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.