Who Owns Telesat Company?

Who Owns Telesat?

Understanding Telesat's ownership is key to its strategic direction. A major shift occurred on November 19, 2021, when Telesat became a public company, listing on Nasdaq and the Toronto Stock Exchange under 'TSAT'.

This transition provided new avenues for growth and access to public equity markets, reshaping its investor base.

Originally a Canadian Crown corporation founded in 1969, Telesat pioneered domestic satellite communications. Today, it's a leading global satellite operator, developing the innovative Telesat Lightspeed LEO constellation. This evolution from government entity to public enterprise significantly impacts its governance and strategic initiatives, including the Telesat BCG Matrix.

Telesat's origins trace back to 1969 when it was established as Telesat Canada, a Canadian Crown corporation. Its initial ownership was vested entirely with the Canadian federal government, providing the foundational capital and strategic direction for developing national satellite communications. The company's early years were marked by significant milestones, including the launch of Anik A1 in 1972, a global first for a commercial geostationary satellite.

Founding as a Crown Corporation

Telesat Canada was established on May 2, 1969, by an Act of Parliament. As a Crown corporation, its initial ownership was solely with the Canadian federal government.

Early Satellite Milestone

In 1972, Telesat launched Anik A1, becoming the operator of the world's first domestic commercial communications satellite in geostationary orbit.

Earth Station Monopoly

Until February 1979, Telesat Canada held a legal monopoly on Earth stations within Canada, requiring all satellite signal transmission and reception to be facilitated through leased Telesat Earth stations.

Privatization Process

The federal government initiated the privatization of Telesat Canada in 1992, selling its stake to Alouette Telecommunications, Ltd.

Full Privatization

By 1998, Bell Canada acquired 100% ownership of Telesat, completing the company's full privatization. The Canadian government acted as the de facto founder, establishing the initial ownership and strategic direction.

Ownership Evolution

The ownership history of Telesat shows a transition from government control to private ownership, significantly impacting its corporate structure and operational strategy, as detailed in the Growth Strategy of Telesat.

Key Ownership Changes

The journey of Telesat ownership reflects a significant shift from public to private control. This transformation was driven by strategic governmental decisions and subsequent corporate acquisitions.

• Initial ownership by the Canadian federal government.
• Privatization process began in 1992.
• Acquisition by Alouette Telecommunications, Ltd.
• Full privatization completed by Bell Canada in 1998.

Telesat's ownership journey has seen significant shifts, notably its privatization and subsequent acquisition by Bell Canada in 1998. A pivotal moment arrived in 2007 when Loral Space & Communications and Canada's Public Sector Pension Investment Board (PSP Investments) jointly acquired Telesat for $2.8 billion USD, marking a new era for the company.

In November 2021, Telesat transitioned to a public entity, listing on Nasdaq and the Toronto Stock Exchange under the ticker 'TSAT'. This move followed an exchange of interests for equity in a new public holding structure, involving Loral's stockholders and other equityholders. Post-listing, MHR Fund Management emerged as a significant shareholder with approximately 36% of the company's equity, while PSP Investments held 37% as of November 2021. These strategic shifts have been instrumental in shaping Telesat's capacity to finance its ambitious Telesat Lightspeed constellation, leveraging capital markets and the sustained support of major institutional investors.

Major Telesat Shareholders

As of March 31, 2025, key institutional investors hold substantial stakes in Telesat Corporation, underscoring the company's corporate structure.

• Public Sector Pension Investment Board: 18,211,203 shares
• MHR Fund Management LLC: 18,035,092 shares
• Gamco Investors, Inc. Et Al: 1,880,733 shares
• Heard Capital LLC: 1,646,695 shares
• Rubric Capital Management LP: 859,512 shares

Telesat's ownership interest in Telesat Partnership has seen a steady increase, reaching 28% as of December 31, 2024, up from 27.2% in 2023 and 25.7% in 2022. This evolution in ownership, particularly the strong backing from institutional investors like PSP Investments and MHR Fund Management, is vital for funding Telesat's capital-intensive Telesat Lightspeed program. Understanding the Revenue Streams & Business Model of Telesat provides further context on how these ownership stakes contribute to the company's strategic objectives and operational capabilities.

Telesat's governance is guided by a board of directors comprising representatives from key shareholders and independent members. The board, as approved at the June 17, 2025, Annual General Meeting, includes Michael Boychuk, Jane Craighead, Richard Fadden, Daniel S. Goldberg (President and CEO), Henry (Hank) Intven, David Morin, Dr. Mark H. Rachesky, Guthrie Stewart, Michael B. Targoff, and Janet Yeung.

The voting power within Telesat Corporation is structured through multiple share classes and units, designed to balance economic interests with control provisions. As of December 31, 2024, the company had 14,080,010 Class A Common Shares and Class B Variable Voting Shares, 112,841 Class C Shares, 3 Special Voting Shares, and 1 Golden Share outstanding. All these shares and Telesat Partnership units generally represent equivalent economic interests and vote collectively. However, the Class A and Class B shares/units are distinguished to maintain Canadian voting control. Holders of Exchangeable Units in Telesat Partnership LP vote indirectly on matters, including director elections, via Special Voting Shares and a Trust Voting Agreement, underscoring the intricate Telesat corporate structure and who controls Telesat.

Understanding Telesat's Voting Power

Telesat's voting structure is complex, ensuring specific control mechanisms are in place. This arrangement is key to understanding Telesat ownership and Telesat stock ownership.

• Class A and Class B shares/units vote as a single class economically.
• Class B Variable Voting Shares are crucial for maintaining Canadian voting control.
• Exchangeable Unit holders vote indirectly through Special Voting Shares.
• Telesat Corporation is the sole general partner of Telesat Partnership LP.
• This structure reflects a deliberate approach to Telesat Canada ownership structure.

Telesat's ownership landscape has evolved significantly, particularly with its transition to a public entity and the substantial funding secured for its next-generation satellite network. Key stakeholders, including large investment funds and government entities, play a crucial role in its corporate structure.

The company's strategic direction is heavily influenced by its ambitious satellite initiatives, which have attracted significant government backing. These developments are reshaping the Telesat company owner profile and its future trajectory.

Public Listing and Initial Ownership

Telesat became a public company on November 19, 2021, listing on Nasdaq and TSX. At this point, MHR Fund Management held approximately 36% and PSP Investments held 37% of the outstanding equity.

Government Investment in Lightspeed

In 2024, Telesat secured C$2.54 billion in loans for its Lightspeed constellation. The Government of Canada provided C$2.14 billion and received warrants for 10% of Telesat LEO Inc., while the Government of Quebec provided C$400 million and received warrants for 1.87%.

Financial Performance and Outlook

For the full year 2024, consolidated revenue was $571 million, a decrease of 19% year-over-year. The company maintains a GEO backlog of $1.1 billion and anticipates capital expenditures of $1 billion to $1.4 billion for Lightspeed in 2024.

Institutional Investor Confidence

As of recent filings, 87 institutional owners collectively hold 45,575,007 shares, indicating sustained institutional confidence. The share price saw a significant increase from $11.21 on July 23, 2024, to $36.88 on July 22, 2025, a rise of 228.99%.