A consortium of South African investors, led by Convergence Partners, has sold its 25.1% interest in the New Dawn joint venture to Intelsat SA, its joint venture partner and the majority shareholder of New Dawn.
The New Dawn joint venture was started to acquire, own and operate the Intelsat New Dawn satellite, stationed at the 33^0 East orbital slot, which provides services in sub-Saharan Africa. Intelsat is now the sole owner and operator of the satellite.
Convergence Partners chairman Andile Ngcaba says the "New Dawn partnership was created to enable the parties to achieve specific objectives".
"The technical anomaly, which resulted in the non-deployment of one of the satellite's reflectors, precluded us from fully realising our broader objectives.
"The venture was a landmark deal for Africa and fundamentally changed the way Africans participate in this critical sector and, as such, remains something we are very proud of."
Africa focus
The consortium also included Altirah Telecoms and the Convergence Partners Foundation. The New Dawn satellite venture was initiated by Convergence Partners, Altirah Telecoms and Intelsat in 2008 to supply critical communications infrastructure for African customers to support the continued development and growth of the region.
Initially announced in December 2008, the $250 million Intelsat New Dawn project was funded through around 15% equity and 85% debt. African institutions provided around 90% of the funding, with Intelsat paying the balance.
The build of the satellite was completed in 2010 and the launch took place in 2011. Commercial services on the operational Ku-Band payload started in June 2012 and the satellite also hosts the MCPC platform for the growing digital television market in the region.
Still committed
"Convergence Partners maintains its long-term commitment to the African space communications sector and is creating further ventures in this regard, in order to assist in ensuring strong representation of Africans in all aspects of the industry.
"The development of these opportunities meet the twin objectives of Convergence Partners, being the generation of attractive financial returns as well as acceleration of the socio-economic development of the continent," adds Ngcaba.
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