A company backed by the Permira funds, along with the Asia Broadcast Satellite (“ABS”) management team, has reached an agreement to acquire Kingsbridge Limited, the holding company for ABS, one of the fastest growing premium satellite operators in the world. The Permira funds will become the majority shareholder of ABS.
Founded in 2006 by CEO Thomas Choi, ABS supplies bandwidth connectivity to broadcasting and telecom customers, serving over 80 customers in around 30 countries. ABS currently operates three satellites in orbit under the ABS brand, one under co-brand with a third party and two additional satellites in the pipeline including the new state-of-the-art ABS-2 scheduled to be launched in early 2013. ABS’ prime orbital locations cover four fifths of the world’s population, targeting high growth markets in Asia, Russia, Africa and the Middle East.
The acquisition of ABS is entirely equity funded. The Permira funds support ABS’ ambition to become a leading satellite operator in its target markets. One of its key near-term initiatives is to build and launch the new ABS-2 satellite, which will be one of the largest fixed service satellites to be launched over the Eastern Hemisphere.
The Permira funds have significant experience in the satellite sector, having previously made successful investments in Inmarsat, a leading provider of global mobile satellite communications services (2003) and Intelsat, the leading provider of fixed satellite services worldwide (2005). At Inmarsat, the Permira funds backed substantial investment in technology through the financing of the design, launch and manufacture of the I-4 fleet of satellites, the most advanced commercial mobile communications spacecraft of their kind. While at Intelsat, the funds facilitated the successful acquisition of Panamsat and the pursuit of new growth opportunities.
Citigroup Venture Capital International Proprietary Investment Partnership, L.P. and Citigroup Venture Capital International Co-Investment, L.P. (collectively, the “CVCI Shareholders”), which have been the majority shareholders of ABS since 2006, agreed to sell their respective interests in the holding company of ABS, along with ADM Capital and certain other shareholders, subject to the terms and conditions of the share purchase agreement dated 9 September, 2010. Terms of the deal were not disclosed. The acquisition of ABS marks the Permira funds’ third investment in Asia since 2007.
Thomas Choi, Founder and CEO of Asia Broadcast Satellite, said: “We are delighted to be working with the Permira funds, one of the world’s most experienced satellite investors. Their team understands the industry and its immense opportunities and shares the management’s growth ambitions. This made them the obvious choice for ABS as we embark on our next stage of development.”
Richard Sanders, head of TMT at Permira, added: “ABS is one of the world’s fastest growing satellite operators, with prime orbital locations serving markets with strong fundamentals. Tom Choi and his team have achieved a tremendous amount in the past four years from start-up and, with the Permira funds’ backing, have the opportunity to continue growing in their target markets in Asia, Russia, Africa and the Middle East.”
Ji Min, Managing Director and Head of Asia for Citi Venture Capital International (CVCI) said: “We had a very positive experience as a majority shareholder of ABS. We applaud the management’s efforts in contributing to the company’s strong growth and in developing good relationships with its customers. We value the close knit relationship that we were able to form with Tom Choi and his team and are pleased to see the company enter the next phase of growth. We wish them a great future.”
Henry Chen, Head of Permira’s Hong Kong office, commented: “This is an example of Permira displaying its competitive edge – combining strong global sector expertise with extensive local reach to capture attractive investments. This is Permira funds’ third investment in Asia and we will continue to focus on attractive opportunities in sectors in which we have deep insight and can bring significant value.”
Penny Hill Tel: +65 8189 8835
Noémie de Andia Tel: +44 20 7632 1159
Kreab Gavin Anderson, PR advisers to Permira
Richard Barton:+852 2218 9988
About Permira in Asia
Permira opened its Tokyo office in 2005 and Hong Kong office in 2008. The Permira funds’ first investment in Asia was in October 2007 when it bought a 20% equity stake in Galaxy Entertainment, the Macau-based gaming group. In February 2008, the Permira funds acquired Arysta LifeScience, an agrochemicals business headquartered in Japan.
For more information,visit www.permira.com.
CVCI is a leader in global emerging markets private equity investing and currently manages over $7 billion in equity investments and committed capital. CVCI has a internationally integrated investment team with over 45 professionals worldwide with a local presence in Singapore, Mumbai, New Delhi, Hong Kong, London, New York, Tokyo and Santiago.
CVCI is part of Citi Capital Advisors. Citi Capital Advisors is an alternative asset management platform that offers a broad range of innovative strategies and products to select institutional and ultra-high-net-worth investors.
About Asia Broadcast Satellite
Asia Broadcast Satellite (ABS) is one of the fastest growing premium satellite operators in the world. ABS serves a global customer base with representatives in Asia, the Middle East, Europe and North America. ABS offers a complete range of End-to-End solutions including Direct to Home (DTH) and Cable TV distribution (CATV), Cellular Backhaul, VSAT and Internet Backbone services with diverse IP transit through its European and Asian internet gateways. ABS currently hosts over 175 TV channels making it as one of the fastest growing and top satellite distribution platforms and broadcaster of TV channels in the Asia Pacific.
ABS is rapidly expanding its satellite fleet and business worldwide through the recent acquisitions of ABS- 7, ABS-1A (formerly Koreasat-2) and ABS-5/Agila 2 (acquired from Mabuhay Satellite Corporation). ABS has also completed a strategic cooperation with Eutelsat for the ABS-1B/W75 satellite at 75°E. ABS is planning the launch of a new state-of-the-art high powered satellite, ABS-2, that is scheduled to become operational in 2013. ABS-2 will be co-located with ABS-1 at the 75° East Longitude, ABS’ prime orbital location, which will be the most powerful orbital location in the Asia Pacific / Indian Ocean region with over 20 kilowatts of power and expansive coverage with 120 active C, Ku and Ka-band transponders.
ABS is committed to maintaining its aggressive growth through the announcement of more strategic partnerships, acquisitions, and further additions to its satellite fleet of ABS-1, ABS-1A, ABS-1B, ABS-2, ABS-5 and ABS-7.