Dennis Muilenburg will continue to lead the company as chief executive officer, president and a director. David Calhoun, currently the independent lead director, was elected by the board to serve as its non-executive chairman.
The board made the decision to separate the CEO and chairman positions in order to allow Muilenburg to focus on day-to-day operations, particularly the task of returning the 737 MAX airliner to commercial service, according to a Boeing statement.
The 737 MAX has been grounded since mid-March due to two crashes — one in Oct 2018 and another in March 2019 — that resulted in the deaths of 346 people.
A report, conducted by a task force that included officials Federal Aviation Administration and other regulatory bodies and released earlier on Friday, stated that changes to the aircraft’s Maneuvering Characteristics Augmentation System were not adequately explained by Boeing, and that the FAA “lacked the expertise” to fully evaluate the system, according to the Associated Press.
“The board has full confidence in Dennis as CEO and believes this division of labor will enable maximum focus on running the business with the board playing an active oversight role,” Calhoun said. “The board also plans in the near term to name a new director with deep safety experience and expertise to serve on the board and its newly established Aerospace Safety Committee.”
Through the Boeing statement, Muilenburg said that he supported the board’s decision and was focused on returning the 737 MAX to service.
The statement did not clarify whether the division of the chairman and CEO positions will be permanent.
10 Oct 19. US bank acquires defence industry advisory firm. KippsDeSanto & Co, an investment bank that advises aerospace, defence and technology companies on mergers and acquisitions (M&A) and financing, has been acquired by Capital One, a major US commercial bank.
“Capital One and KippsDeSanto have a shared goal of providing clients with trusted advice and counsel enabled by deep industry expertise and a seamless client experience,” said Steve Tulip, head of capital markets at Capital One Commercial Banking. “By bringing our teams together, we’ll be able to add scale and expertise to our growing M&A advisory group, which will benefit clients in a wide variety of industries.”
KippsDeSanto, which is based in Tysons Corner, Virginia, will become a wholly-owned subsidiary of Capital One and keep its name. (Source: Google/Jane’s 360)
10 Oct 19. HENSOLDT expands Asia-Pacific Business. Acquisition of Australian radar Solutions and Services provider IE Asia-Pacific strengthening regional footprint. The sensor solutions provider HENSOLDT continues its global expansion strategy in the Asia-Pacific region. The Group has acquired IE Asia-Pacific Pty Ltd, headquartered in Canberra, Australia. Now operating as HENSOLDT Australia Pty Ltd, they are the leading radar solutions and services provider in the country and throughout the wider APAC region. “The local support of our customers in Australia and in the Asia Pacific markets is extremely important to HENSOLDT”, said Thomas Müller, CEO of HENSOLDT. “HENSOLDT Australia is a part of our Global Customer Support & Services business and provides our customers with unparalleled radar solutions and systems support.”
HENSOLDT Australia offers radar support, testing, training and installation services to the Australian Defense Force and other agencies. It currently employs more than 20 highly trained staff and generates annual revenues exceeding €4m.
“We are excited to join HENSOLDT, to contribute to the company’s global growth and to further expand the support of our customers”, said Darren Gillam, GM Operations HENSOLDT Australia.
HENSOLDT maintains longstanding business relations, delivering radars, electronic warfare systems, electro-optronic devices and air traffic control equipment to customers in the APAC region. HENSOLDT Australia will also be able to provide support to this wide range of products, which in turn will provide enhanced services and support for all our valued regional customers.
04 Oct 19. SRT Marine Sees Losses Deepen Despite Revenue Growth. Maritime surveillance and monitoring group SRT Marine Systems expects interim losses to widen despite reporting increased revenues throughout the first half of the year. In a trading update for the six months to 30 September, SRT Marine said first-half losses looked set to widen year-on-year from £1.3m to £1.5m, even as it recorded a 10% increase in revenues to £3.5m.
The AIM-listed group said its transceivers business generated the majority of its revenues, with period-on-period growth of 15%, while its systems business made “good progress” delivering against its £32m of active contracts.
SRT said it was also developing multiple new system contract opportunities of various sizes, with good progress being made during the first half as several deals progressed towards commencement during the second half.
Chief executive Simon Tucker said: “SRT continues to make excellent progress in our chosen target markets of AIS transceivers and integrated maritime surveillance and intelligence systems for coast guards and fisheries.
“The first half has also seen significant activity and progress around a number of pending system contracts and we look forward to updating shareholders regarding these during the second half and as such we remain comfortable with market expectations.” (Source: Sharecast)
08 Oct 19. Chatsworth Products (CPI)—a global manufacturer of information and communications technology (ICT) infrastructure and power products, and industrial enclosures—has completed the acquisition of Pennsylvania-based Oberon Inc., a provider of mounting solutions for wireless access points and antennas. The combined expertise of both companies will benefit all customers looking to extend their network to the edge and outdoor environments, with an enhanced CPI portfolio that now includes a wider selection of indoor and outdoor wireless enclosures and Wi-Fi mounting solutions.
“With artificial intelligence, the Internet of Things (IoT) and Industrial IoT driving ubiquitous connectivity, edge computing is no longer a ‘nice to have’, but a ‘must have’ for any business that wants to remain competitive now and in the future. CPI is proud to be a stronghold in the industry and this acquisition underscores this vision,” says Michael Custer, CPI President and CEO.
Effective immediately, Oberon is a wholly owned subsidiary of CPI, and will continue to be managed by its current leadership team, including Scott D. Thompson, Oberon President and CEO.
“Oberon shares CPI’s vision of helping customers successfully embrace digital transformation. We are excited to be part of a pioneering organization that not only understands our products, but also the industry as a whole. As we continue our paths together, we hope to solve the challenges of the digital era with breakthrough technology and unique networking infrastructure solutions,” says Thompson.
07 Oct 19. Naval Group launches new local subsidiary in long-term commitment to Australian defence industry. Naval Group Pacific to manage commercial activities in the Australasia region and spearhead pioneering research and development initiatives. Naval Group, a world leader in naval defence, has today announced the launch of Naval Group Pacific, to be operated out of Sydney, Australia.
Naval Group is a naval systems provider and integrator, one of the few companies in the world with the ability to deliver complete surface ships and submarines, with their combat systems and all the critical equipment necessary to engage naval power in a theatre of operations. Naval Group is involved at every stage in the warship life cycle, from design to in-service support.
Distinct from the Adelaide-based Naval Group Australia, which is wholly dedicated to the Australian Future Submarine Program, Naval Group Pacific will focus on strengthening Australia’s broader defence capabilities through sales, program management and sustainment of the Naval Group’s existing portfolio of advanced technology products, systems and services and through the building of partnerships with the Australian industry. The subsidiary will have responsibility for Naval Group business development activities in Australia and New-Zealand.
Naval Group Pacific will also develop a world-class research and development (R&D) centre in Australia.
CEO and Chairman of Naval Group, Hervé Guillou said: “Naval Group Pacific will rely on a long term partnership culture and leverage the dynamic R&D policy of its parent company to solve some of the local defence industry’s most critical challenges. Naval Group Pacific will make Australia a global R&D Centre of Excellence for Naval Group, with a policy to privilege cooperation, gathering industry, academia and government to develop new maritime defence technologies.”
“The new subsidiary represents Naval Group’s commitment to the region and further demonstrates the great potential for ongoing industry collaboration, development of capability, and pioneering innovation.
“Our commitment to Australia is founded in the Future Submarine Program, however it is important that we continue to build on this. Naval Group Pacific will combine our more than 400 years of experience and knowledge in naval defence with local insight, to strengthen Australia’s defence capability and support the evolution of one of the country’s fastest growing industries.”
03 Oct 19. Morgan Stanley Research: Intelsat S.A. — Catalyst Driven Idea. Morgan Stanley expects the FCC to issue a Final Report and Order in November on repurposing a portion of the C-Band spectrum (3.7-4.2 GHz) for wireless use. The FCC’s Final Report and Order should address if — and how (private auction, etc.) — the C-Band, currently used by satellite providers can be reallocated to wireless carriers. Morgan Stanley estimates this spectrum is worth between $10-30bn in gross proceeds, payable to the satellite providers if going through a private auction route, to compensate for the economic costs of moving satellite services away from a portion of the band. There may also be a voluntary windfall tax on these gross proceeds.
FCC Chairman Ajit Pai recently noted, “I’m optimistic that later this fall we will vote on in order to make a significant amount of spectrum available in the C-Band for 5G.”
Morgan Stanley expects this matter to be voted on at the November 19 (or possibly December 12) FCC Commission meeting. The agenda items for this meeting should be posted approximately three weeks ahead of time —October 29 (or November 21).
Intelsat should report 3Q19 earnings in late October or early November.
FCC adopts CBA proposal with windfall tax of 15 percent or lower
FCC adopts CBA proposal with 21 percent + windfall tax
FCC delays action on C-Band/Proposes FCC led auction.
Since the FCC Notice of Proposed Rulemaking was issued in June of 2018, the market has been anxiously awaiting a final Report and Order. The FCC appears ready to permit the C-Band Alliance to run an auction for 180/280 MHz of spectrum under their supervision. While the C-Band Alliance has offered to make “a significant voluntary contribution to the U.S. Treasury”, the size of that contribution remains unclear.
Share price $28/+23 percent, At $20bn in gross proceeds, a 15 percent Windfall Tax (versus 21 percent) would represent about an incremental ~$510m in proceeds to Intelsat, or ~$3.6 per share.
Share price $24/+ percent. A 21 percent rate equates to the Federal Corporate Tax rate, which could be an anchor point. The stock should benefit from added certainty on the outcome, particularly if there is more clarity on reclaiming 280 MHz of spectrum versus 180 MHz.
Share price $19/-17 percent. A delay into 2020, or a decision to choose an FCC led auction, would likely pressure the stock after recent appreciation. Morgan Stanley’s base case is most similar to Scenario 2, using a 30 percent discount in the company’s valuation to account for voluntary contributions, other taxes and expenses. For gross proceeds, Morgan Stanly is assuming a $0.375/MHzPOP on 180 MHz of C-Band spectrum. Furthermore, the company assumes $2bn of clearing costs for the initial 180MHz band, with 45 percent of the net proceeds going to Intelsat.
Morgan Stanley’s price target valuation is based off a 7.0x satellite EV/EBITDA (satellite peer average prior to C-Band interest) + 37.5c/MHzPOP C-band value (initial 180MHz) +25c/MHzPOP (incremental 100MHz)
- Increased competition — Bidding wars over satellite service prices as supply grows. Several competitors also have high throughput satellites (HTS) coming online. These HTS could lower pricing across the existing fleets.
- Satellite anomalies — Intelsat’s revenue growth is highly dependent on additional capacity from upcoming satellite launches
- Weak credit markets — Refinancing debt at attractive rates may be dependent on market conditions
- FCC decision on C-band – An FCC decision on how to repurpose the C-band for mobile use may vary from Intelsat’s preferred outcome. (Source: Satnews)
07 Oct 19. HENSOLDT acquires NEXEYA activities. Acquisition of a large French electronic equipment and solutions provider to complement portfolio and expand footprint in France. HENSOLDT, the leading independent sensor solutions house has acquired NEXEYA, a provider of services and electronics solutions for defence and commercial customers. With all legal requirements met, the share purchase agreement signed in April this year has now taken effect.
The acquired activities represent a turnover of around €95m and a workforce of approximately 620 employees.
“NEXEYA strengthens our industrial base particularly in France, improving customer access and enhancing our product portfolio”, said Thomas Müller, CEO of HENSOLDT. “HENSOLDT is already successful in France, but this acquisition boosts our strategy of developing commercial markets and creates new opportunities in the area of services. Thus, the move is in line with the acquisitions made in Germany and the UK in the last two years in the areas of avionics, security and industrial engineering.”
“I am proud, that NEXEYA becomes a part of HENSOLDT” said Jérôme Giraud, CEO of NEXEYA France and HENSOLDT Holding France. This is an exciting new chapter for our growth story. Our complementary product portfolios provide opportunities for innovative product combinations and new developments that will benefit our customers domestically and abroad”, Giraud said. “NEXEYA will benefit from increased global and segmental market access, investment capacities and human skills using the continuously growing HENSOLDT sales and marketing network. “
With three major industrial sites (Angoulême, Massy and Toulouse), NEXEYA designs, manufactures tests and maintains complex electronic systems for the Aerospace, Defence, Energy and Transports sectors.
An industrial partner of the aeronautical industry for more than 30 years, NEXEYA supplies products and solutions to aircraft OEMs, both civil and military, as well as their equipment manufacturers. The company is involved in all stages of development and life cycle of an aircraft, from the design and validation of prototypes to their maintenance. Complementary with HENSOLDT France, which develops IFF identification systems and data links for the Defence market, NEXEYA designs mission management systems. NEXEYA is also a strong player in the renewable energy market, developing and manufacturing hydrogen-based energy storage and supply stations.
03 Oct 19. ND SatCom Acquires TECNA in Senegal to Further the Company’s West African Business. ND SatCom has acquired TECNA located in Dakar, Senegal — this important, strategic move will further enhance outreach and interaction between the company and its customers, partners and the leading communication companies in the West Africa region.
TECNA Suarl has now been renamed ND SatCom SENEGAL.
Charly Nakache, who brings a wealth of industry experience in satellite communications, has been appointed as general manager of ND SatCom SENEGAL and, together with his highly-motivated team of sales and technical professionals, will be responsible to manage the day to day business in the region and expand the reach of ND SatCom.
Alexander Mueller-Gastell, CEO of ND SATCOM, said that with new business growing for ND SATCOM in West Africa, the need to establish local presence became vital. The company sees very positive potential for the firm’s satellite communication solutions here and this decision to acquire TECNA underscores this potential and the opportunity to expand further afield. The office location is close to several of ND SATCOM’s existing customers and provides an excellent base where the company can share our latest technology and insights. With the firm’s new Director, Charly Nakache, customers and partners in the region can expect excellent responsiveness, collaboration and tailored solutions that meet their unique communications needs. (Source: Satnews)