Sky Perfect JSAT to buy Space Communications

Sky Perfect JSAT Corp. said Wednesday it will acquire satellite operator Space Communications Corp. from the Mitsubishi group for ¥28 billion.

The deal will turn Sky Perfect JSAT into the nation's sole operator of communications satellites and the fifth-largest satellite operator in the world. The deal also will enhance its bargaining power with satellite makers and other satellite operators.

Sky Perfect JSAT was established as the holding firm for broadcaster Sky Perfect Communications Inc., operator of the SkyPerfecTV service, and communications satellite operator JSAT Corp., when they integrated management last April.

The holding firm will acquire Space Communications on March 31. Its largest shareholder, trading company Mitsubishi Corp., will be allowed to retain a 3 percent stake for up to a year after that date.

Space Communications was founded in 1985 by major Mitsubishi group companies, including Mitsubishi Electric Corp. and Mitsubishi Heavy Industries Ltd.

It provides satellite-based communications services to government offices and businesses but has had difficulty expanding its customer base.

Industry analysts said Sky Perfect JSAT's acquisition of Space Communications is just another move in the intensely competitive multichannel broadcasting industry.

Among Sky Perfect's rivals, Jupiter Telecommunications Co., the nation's largest cable TV operator, has become a driving force behind consolidation in the industry.