SES: shares rise as fund pressures company
(CercleFinance.com) - SES shares gained almost 5% on Thursday morning in Paris, following the publication by the US investment fund Appaloosa of proposals to modernize the satellite operator, which it considers to be facing an "existential crisis".
At around 10am, the share was up around 5%, making it one of the strongest performers on the SBF 120 index.
While Appaloosa supports the proposed merger with Intelsat, it considers that SES is currently operating in the most difficult competitive environment in its history.
In a press release issued ahead of the group's forthcoming AGM, Appaloosa - which says that it holds over 7% of the group's capital - first and foremost urges SES to modernize its capital structure.
The New Jersey-based fund suggests that SES convert its Class B shares into Class A shares, which would reduce the voting rights of the Luxembourg State to around 16.7%, compared with around 33.3% today.
In its view, the Grand Duchy's strong presence in the SES capital discourages investors and customers from viewing the group as a true commercial enterprise.
Appaloosa also advocates limiting the number of seats on the Board of Directors to nine, with the Luxembourg government's representation corresponding to its fair shareholding of 16.7%.
Finally, the investment fund asks SES to pass on to its shareholders the synergies of about E2.4bn resulting from the merger with Intelsat, in the form of a redistribution of capital.
This morning SES said that it would evaluate Appaloosa's proposals with interest and make a recommendation to its shareholders in due course, advocating an "open and constructive" dialogue on its strategy and on opportunities for long-term value creation for its shareholders.
Copyright (c) 2025 CercleFinance.com. All rights reserved.
At around 10am, the share was up around 5%, making it one of the strongest performers on the SBF 120 index.
While Appaloosa supports the proposed merger with Intelsat, it considers that SES is currently operating in the most difficult competitive environment in its history.
In a press release issued ahead of the group's forthcoming AGM, Appaloosa - which says that it holds over 7% of the group's capital - first and foremost urges SES to modernize its capital structure.
The New Jersey-based fund suggests that SES convert its Class B shares into Class A shares, which would reduce the voting rights of the Luxembourg State to around 16.7%, compared with around 33.3% today.
In its view, the Grand Duchy's strong presence in the SES capital discourages investors and customers from viewing the group as a true commercial enterprise.
Appaloosa also advocates limiting the number of seats on the Board of Directors to nine, with the Luxembourg government's representation corresponding to its fair shareholding of 16.7%.
Finally, the investment fund asks SES to pass on to its shareholders the synergies of about E2.4bn resulting from the merger with Intelsat, in the form of a redistribution of capital.
This morning SES said that it would evaluate Appaloosa's proposals with interest and make a recommendation to its shareholders in due course, advocating an "open and constructive" dialogue on its strategy and on opportunities for long-term value creation for its shareholders.
Copyright (c) 2025 CercleFinance.com. All rights reserved.