OTTAWA – BCE CEO Michael Sabia said today that while interest in Telesat is high, the plan is still to take the satellite company public.
Since Bell Canada Enterprises announcement in February that it would launch an initial public offering for Telesat, numerous other players have come to the table, looking to buy the operation outright. No dice, Sabia said today.
"Given Telesat’s growth potential over the medium term as we look at the opportunities in the sector that it operates – and when you think about those growth opportunities then bolstered by a company that would have its own currency, we believe that the approach of taking this company public does offer us the most significant value creation potential," Sabia told a conference call with financial analysts Wednesday morning.
"That being said, we’re aware of some interest that has surfaced among some strategic and financial players. Nonetheless, we continue to be of the view that the public process is the value maximizing approach to moving forward with Telesat."
Telesat’s first quarter operating revenue, released Wednesday, was $117.9 million, a 9% increase from the same period of 2005. The company posted net earnings applicable to common shares of $21.6 million in the quarter ended March 31st, 11% higher than Q1 2005.
Cash flows from operating activities for the first quarter of 2006 were $84.7 million compared to $50.9 million for the first quarter of 2005, an increase of 66%. The increase is due in large part to a customer prepayment and the repayment of a promissory note, said the release.
