Media Release
Extension of Completion Date of the Lease Agreement
between Loral and APT Satellite
Major Transaction
| As extra time is required for fulfilment of conditions precedent, the completion date of the Lease Agreement between APT (HK) and Loral Asia in relation to the leasing of substantially all of the transponder capacities of APSTAR-IIR was extended. An extension was sought from the Stock Exchange for the despatch of the circular in relation to the transaction to 20th September, 1999. |
Further to the announcement of the Company dated 18th August, 1999 ("Announcement"), the board of directors announces that completion of Lease Agreement between APT (HK) and Loral Asia in relation to the leasing of substantially all of the transponder capacities of APSTAR-IIR was extended, Completion was originally agreed to be within 2 weeks from 18th August, 1999, being the date of the Lease Agreement. However, as extra time is required for the fulfilment of certain conditions precedent, including the completion of due diligence review by Loral Asia, which takes longer than as anticipated by the parties, completion of the Lease Agreement was extended. APT (HK) and Loral Asia are currently in the course of negotiating a supplemental agreement setting out the agreed new completion date, which is expected to be on or before 30th September, 1999.
The lease price should be approximately US$298 million (equivalent to approximately HK$2,310 million at an exchange rate of HK$7.75: US$1.00) instead of US$304 million as set out in the Announcement as the lease price will be set off for one excluded transponder. The amount set off is approximately US$5.92 million (equivalent HK$45.90 million at an exchange rate of HK$7.75: US$1.00) calculated with reference to the total bandwidth of APSTAR-IIR. The exclusion of the transponder was made at the request of the existing customer of APT (HK), an independent third party. APT (HK) will continue to lease the transponder to such customer directly.
The Company has sought an extension from the Exchange to despatch the circular in relation to the transaction from 8th September, 1999 to on or before 20th September, 1999 under Rule 14.13(2) of the Listing Rules since more time is required to prepare the circular as a result of the negotiation between APT (HK) and Loral Asia on the new completion date.
Unless otherwise defined, terms used in this announcement shall have the same meanings as set out in the Announcement.
By order of the Board
APT Satellite Holdings Limited
Brian Lo
Company Secretary
8th September, 1999
For any enquiry:
Tel: (852) 29188013 email: aptir@apstar.com fax: (852) 25220419 www.apstar.com
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