Telesat announces equity distribution of Telesat Lightspeed business

Rhea-AI Summary

Telesat (NASDAQ/TSX: TSAT), a leading satellite operator, has announced the completion of an equity distribution involving its Telesat Lightspeed business. The company has distributed 62% of the equity to an indirect subsidiary of Telesat Corporation. This subsidiary is wholly-owned by Telesat Canada's parent entities and holds a non-guarantor status under Telesat Canada's debt documents.

The company emphasized that this internal restructuring will not affect its ongoing operations.

News Market Reaction

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+21.49% News Effect

On the day this news was published, TSAT gained 21.49%, reflecting a significant positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

OTTAWA, Ontario, Sept. 12, 2025 (GLOBE NEWSWIRE) -- Telesat (Nasdaq and TSX: TSAT), one of the world’s largest and most innovative satellite operators, today announced that it has completed the distribution of 62% of the equity of its Telesat Lightspeed business to an indirect subsidiary of Telesat Corporation. The indirect subsidiary is wholly-owned by Telesat Canada’s parent entities and is a non-guarantor under Telesat Canada’s debt documents. There are no changes to the Company’s operations as a result of this transaction.

About Telesat

Backed by a legacy of engineering excellence, reliability and industry-leading customer service, Telesat (Nasdaq and TSX: TSAT) is one of the largest and most successful global satellite operators. Telesat works collaboratively with its customers to deliver critical connectivity solutions that tackle the world’s most complex communications challenges, providing powerful advantages that improve their operations and drive profitable growth. Continuously innovating to meet the connectivity demands of the future, Telesat Lightspeed, the company’s state-of-the-art Low Earth Orbit (LEO) satellite network, has been optimized to meet the rigorous requirements of telecom, government, maritime and aeronautical customers. Telesat Lightspeed will redefine global satellite connectivity with ubiquitous, affordable, high capacity, secure and resilient links with fibre-like speeds. For updates on Telesat, follow us on LinkedIn, X, or visit www.telesat.com.    
                                    
Media Contact:
Lynette Simmons
pr@telesat.com

Investor Relations Contact:
James Ratcliffe
+1 613 748 8424
ir@telesat.com

FAQ

What percentage of Telesat Lightspeed business was distributed by TSAT?

Telesat distributed 62% of the equity of its Telesat Lightspeed business to an indirect subsidiary of Telesat Corporation.

How does the Telesat Lightspeed equity distribution affect TSAT's operations?

According to the company, there are no changes to operations as a result of this internal restructuring transaction.

Who received the distributed equity of Telesat Lightspeed?

The equity was distributed to an indirect subsidiary of Telesat Corporation, which is wholly-owned by Telesat Canada's parent entities and is a non-guarantor under Telesat Canada's debt documents.

What is the significance of TSAT's Lightspeed equity distribution?

The distribution represents an internal restructuring where 62% of Telesat Lightspeed's equity was moved to a subsidiary, with no operational impact on the company.