By Lisa Kerner
Charlotte, N.C., Sept. 23 - SkyTerra Communications, Inc. agreed to be acquired by a new corporation formed and indirectly wholly owned by Harbinger Capital Partners Master Fund I, Ltd. and Harbinger Capital Partners Special Situations Fund, LP.
The new corporation will buy all of SkyTerra's outstanding shares not owned by Harbinger for $5 each in cash.
Harbinger and its affiliates together hold approximately 48% of SkyTerra's outstanding voting common stock and approximately 49% of SkyTerra's voting and non-voting common stock combined.
According to SkyTerra, the per-share price is a 56% premium over the average closing price of its common stock for the 30 days ended Tuesday.
SkyTerra said it agreed to the going-private transaction following a review of strategic alternatives by the special committee of the company's board of directors in conjunction with Morgan Stanley & Co.
The transaction is slated to close in late 2009 or early 2010, subject to approval by SkyTerra shareholders.
SkyTerra is a Reston, Va.-based provider of mobile wireless voice and data services primarily for public safety, security, fleet management and asset tracking in the United States and Canada.
| Acquirer: | Harbinger Capital Partners Master Fund I, Ltd. and affiliates
|
| Target: | SkyTerra Communications, Inc.
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| Announcement date: | Sept. 23
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| Price per share: | $5.00
|
| Expected closing: | Late 2009 or early 2010
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| Stock price for target: | OTCBB: SKYT: $3.40 on Sept. 22
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