British Telecommunications PLC
31 August 2000
BT AGREES SALE OF MOBILE SATELLITE SERVICES
BUSINESS TO STRATOS GLOBAL CORPORATION
BT today announced that it is to sell part of its
Aeronautical and Maritime division to Stratos Global
Corporation for £157 million (approximately Canadian $350
million).
The business operates land earth stations and provides a
full global range of Inmarsat based mobile satellite
services for customers calling to or from remote locations
at sea, in the air or on land where other telecommunications
infrastructure is not available. Turnover for the year
ending March 31, 2000 was approximately £81 million.
The sale includes BT's land earth station network providing
connection between satellites and the terrestrial network,
together with customer and supplier contracts. Also to be
sold is the entire share capital of BT Netley (New Zealand)
Ltd, a wholly owned BT subsidiary providing Inmarsat land
earth station services for the Pacific Ocean region.
Aeronautical and Maritime also provides in-flight passenger
communications and the assets and contracts for this
business will also transfer to Stratos.
Bob Warner, BT's managing director UK Enterprises, said:
'This is a tremendous business with potential for growth.
We are confident that this sale is in the best interests of
BT and of Aeronautical and Maritime employees. Stratos is
keen to build up a stronger presence and grow the business
in this specialist field and we wish them well.'
BT currently has around 110 people working directly for
Aeronautical and Maritime, with around another 110 people
indirectly supporting the business from other parts of BT.
It is expected that around 70 people will transfer to
Stratos. All other employees will remain with BT with a
significant number to work on an outsourcing basis providing
services to Stratos, in particular at the Goonhilly earth
station in Cornwall.
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