11th Aug 2014 10:13
LONDON (Alliance News) - Satellite operator Avanti Communications Group PLC Monday said it has completed contracts to purchase and launch the HYLAS 4 satellite.
The new satellite, which is scheduled for launch in April 2017, will serve new markets in Africa, and also provide expansion capacity for existing customers in areas of Europe and Africa covered by the HYLAS 1 and 2 satellites. It could also serve markets in Latin America or Africa.
"The total cost to build, launch and insure the satellite is expected to be 15% to 20% below market expectations.
Avanti estimated a budget of USD350 million when it issued the first of two tranches of a bond earlier this year to commence the project, but said it now expects to make savings.
"We have also managed to secure a more favourable and flexible payment profile," it said.
Avanti Communications shares were trading 3.7% higher mid-morning Monday, at 177.25 pence.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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