YOU ARE AT:Archived ArticlesMotient to consolidate ownership of MSV, TerreStar

Motient to consolidate ownership of MSV, TerreStar

LINCOLNSHIRE, Ill.-Motient Corp. and Mobile Satellite Ventures LP announced an agreement with SkyTerra Communications Inc. and TMI Communications & Co. to consolidate ownership of MSV and TerreStar Networks Inc. within Motient.

Motient, a wireless data provider for small to medium enterprise businesses, and MSV said the move will simplify ownership and governance of MSV and TerreStar, enabling them to more effectively deploy their hybrid mobile satellite and operate their spectrum-efficient spot beam satellite network in the 2 GHz frequency band.

MSV is developing a hybrid satellite-cellular communications network, which the company said would provide seamless wireless coverage of North America to conventional handsets.

In a letter of intent, Motient said it intends to issue about 77 million shares of stock in exchange for outstanding MSV interests and about 16 million shares of stock for outstanding TerreStar interests. All of the outstanding interests of MSV and TerreStar are to be transferred to Motient at the closing of the deal.

“We are taking these steps to simplify the ownership structure of these assets and improve their ability to build value for shareholders,” said Christopher Downie, chief operating officer of Motient. “We believe that this transaction positions Motient’s shareholders into a more direct and immediate ownership position of MSV and TerreStar and brings with it significant resulting benefits.”

The letter of intent also said that Alex Good, chief executive of MSV, will become Motient’s chief executive, and Robert Brumley, chief executive of TerreStar, will continue in his role.

Before the deal can close, it must be approved by shareholders and boards of directors of both Motient and SkyTerra. The letter of intent is nonbinding, leaving the door open for changes to the terms of the agreement.

ABOUT AUTHOR