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AsiaSat prepares for massive global stock float

HONG KONG: Hong Kong's Asia Satellite Telecommunications Co Ltd (AsiaSat) is preparing to float 25 percent of its equity in the next few months in order to refinance loans.

The South China Morning Post said on Sunday the satellite operator would seek the stock flotation this June or July in New York, London and possibly Hong Kong.

The paper quoted unidentified sources within AsiaSat and the industry as saying that preparations for the listing were already underway.

It said AsiaSat aims to refinance about US$250 million worth of syndicated debt for its in-orbit satellites and the planned AsiaSat3.

AsiaSat executives were not immediately available for comment on Sunday.

But a Hong Kong-based American banker, who declined to be named, told Reuters preparations were underway for a listing in New York, that it would be a club deal, and that the flotation would be handled by Goldman Sachs (Asia).

Industry specialists were "relatively bullish" about AsiaSat's initial public offering (IPO) prospects, the South China Morning Post said.

"Given that the markets are generally bullish about such communications and technology-related issues, a valuation of US$1 billion could be achievable," the paper quoted industry specialist Michael Jones as saying.

AsiaSat is owned in equal parts by Hong Kong's Hutchison Whampoa Ltd, Britain's Cable & Wireless Plc and Beijing's state-owned flagship China International Trust and Investment Corp (CITIC).

AsiaSat1, launched in 1990, was the first privately-owned satellite over Asia, and has 24 transponders offering coverage from Mongolia to the upper regions of Indonesia and from Japan to the Middle East.

AsiaSat2 was launched in November last year and its signal can reach two-thirds of the world's population.

The company plans to launch AsiaSat3 late next year.-Reuter