Two Canadian pension funds to own 53 per cent of satellite service company Inmarsat

BUSINESS

Two Canadian pension funds to own 53 per cent of satellite service company Inmarsat

The Canadian Press Published Monday, March 25, 2019 2:50PM EDT

A Falcon 9 SpaceX rocket carrying a communications satellite lifts off from pad 39A at the Kennedy Space Center in Cape Canaveral, Fla., Monday, May 15, 2017. The satellite will add to Inmarsat's Global Xpress network linking airplanes, ships and other mobile terminals with broadband Internet and data services. (AP Photo/John Raoux)

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TORONTO - Two of Canada's largest pension funds have committed more than half of the US$3.08 billion that the Triton consortium has agreed to pay for Inmarsat PLC, a U.K.-based provider of satellite services for data and voice communications.

Canada Pension Plan Investment Board said Monday its financial commitment will be approximately US$900 million, or about 29.27 per cent of the total amount, assuming the deal receives all approvals.

Ontario Teachers' Pension Plan didn't announce the value of its commitment but pointed to regulatory documents that say it has agreed to provide 24.39 per cent of the consortium's investment, which would be about US$750 million.

Funds managed by Apax Partners and Warburg Pincus will have 24.39

and 21.95 per cent stakes respectively.

The Toronto-based pension managers -- two of Canada's biggest institutional investors -- said they believe the satellite sector has attractive investment potential, given the long lead times and technical expertise required.

They said Triton Bidco believes that integrated satellite operators with scale like Inmarsat are well positioned as network provision becomes more complex.