SES S.A.: Consolidation With Intelsat Creates Satellite Behemoth

Summary

• SES S.A. completed the C-Band spectrum monetization effort, acquired Intelsat for $3.1 billion, and rolled out the O3b mPower constellation.
• The Intelsat acquisition makes SES S.A. the largest non-LEO satellite operator in the world and dominant in the mobility network industry.
• Mid-band spectrum assets and potential monetization add significant value to the combined company.
• A special dividend (5% yield) and buyback plan (6% yield) in 2024 add to the nominal 10% dividend yield on the pro-forma stock at less than 5x the EBITDA multiple.

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My previous article in January 2024 was an update reflecting on the operational milestones achieved by SES S.A., particularly completion of the C-Band spectrum monetization effort and roll-out of the medium-earth orbit (MEO) O3b mPower constellation. Like the sell-side

Analyst’s Disclosure: I/we have a beneficial long position in the shares of SGBAF either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

I hold the native ticker, SESG.PA, on the Paris EuroNext stock exchange.