Satellite operator Yahsat, controlled by Abu Dhabi sovereign fund Mubadala Investment Co., is looking to grow by acquisitions over the next few years, according to its chief financial officer.
(Bloomberg) —
Satellite operator Yahsat, controlled by Abu Dhabi sovereign fund Mubadala Investment Co., is looking to grow by acquisitions over the next few years, according to its chief financial officer.
“M&A is definitely on the table,” Andrew Cole said in an interview.
“We have a lot of cash and very strong balance sheet” to fund organic growth, while sustaining a growing dividend policy, he said.
Mubadala last year raised $731 million from the initial public offering of Yahsat, which trades under the name Al Yah Satellite Communications Co.
The company offers satellite services in more than 150 countries across Europe, the Middle East, Africa, South America, Asia and Australasia, according to its website.
Yahsat on Monday reported a third-quarter loss of $10 million after “adjusting for material, one-off items.” It posted a 16% jump in revenue and said it’s on track to grow dividend by at least 2% yearly.
Cole said Yahsat will “step on the gas” to grow its top line business over the next few years.
The satellite operator is looking into multiple growth areas, including data solutions business, mobility solutions business, Internet of Things, and oil and gas.
In October, Yahsat acquired a minority stake in eSAT Global Inc, an IoT connectivity solutions provider to meet “growing demand for connectivity using low-cost, low-power IoT devices.”
At the moment, the company is also focused on expanding satellite communications in niche areas such as fishing vessels in Vietnam and seeking to expand into other territories in the region such as the Philippines, Cole said.
Yahsat has a contract backlog worth $2 billion and $631 million in cash and short-term deposits, he said.
Its total available liquidity rose by $174 million this year mainly due to receiving advance payments from the government, according to its third-quarter results.
More stories like this are available on bloomberg.com
©2022 Bloomberg L.P.
