Intelsat S.A. And SES S.A.: To The Moon

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About: Intelsat S.A. (I), SGBAF
by: Kerrisdale Capital Management
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Kerrisdale Capital Management
Hedge fund manager, long/short equity, value, special situations
Summary

Intelsat and SES stand to benefit massively if the FCC permits them to sell access to their spectrum in order to accelerate the deployment of 5G.

Intelsat and SES’s proposal is the best and fastest way to unlock the value of this crucial spectrum.

The companies can free up and monetize most of the band while still accommodating the existing needs of incumbent users.

We are long shares of Intelsat (I) and SES (EPA: SESG, OTCPK:SGBAF), two large satellite operators with significant and underappreciated 5G spectrum assets. For us, this is an unusual position to be