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Summary
- Canadian satellite communications company Telesat is set to receive an investment of C$ 400 million from the Quebec government for its Lightspeed program.
- As per Telesat’s agreement with the government, Quebec will be the centre for Lightspeed’s operations and be a “key partner” in its manufacture.
- Telesat had announced its plans to turn into a publicly traded company back in November last year.
Canadian satellite communications company Telesat, which is expected to go public sometime this year, is set to receive an investment of C$ 400 million from the provincial government of Quebec for its Lightspeed program.
Lightspeed, Telesat explained, is an advanced low Earth orbit satellite network. The company said on Thursday, February 18, that it has signed a Memorandum of Understanding (MOU) with the Quebec government for the funding.
Telesat-Quebec MoU – Key Highlights
As per Telesat’s agreement with the government, Quebec will be the centre for Lightspeed’s operations and be a “key partner” in its manufacture. The Canadian province is also set house a Telesat campus that will include various Lightspeed technical operations.
Telesat noted that the Lightspeed program will create about 600 jobs in the field of science, technology, engineering and mathematics (STEM). The new campus in Quebec will comprise of about 320 fresh job openings, primarily in the STEM department.
Photo: Pixabay
The Quebec government’s investment will consist of C$ 200 million in preferred equity and another C$ 200 million in loan. The transaction, Telesat said, is expected close in the next few months, Telesat said in its latest release.
Earlier in February, Telesat selected French-Italian aerospace manufacturer Thales Alenia Space to produce its satellites for the program that will beam Wi-Fi network from low Earth orbit. Thales Alenia is currently said to be in talks with Quebec-based partners as the final stages of the satellite manufacture will take place at facilities in the province.
Telesat has also decided to collaborate with Ontario-based space tech firm MDA to manufacture the phased array for the Lightspeed satellites.
Prior to this agreement, the Canadian government had agreed in November to pay Telesat C$ 600 million over a period of 10 years to provide subsidized broadband internet connection to rural regions in the country.
Telesat’s Impending IPO
Telesat had announced its plans to turn into a publicly traded company back in November last year. The satellite operator had said that it would be merging with one of its co-owners, Loral Space & Communications Inc (NASDAQ:LORL), to go public.
The terms of the agreement that were announced on November 24, 2020, pointed that following the merger, Telesat Canada and Loral Space would become subsidiaries of a new public entity called Telesat Corporation.
Telesat’s stocks, which will be listed on the Nasdaq Global Select Market, are expected to hit the stock markets following the completion of the merger in 2021. The Ottawa-based satellite operator also plans to get listed on Canadian stock markets eventually.
