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Iridium, Iridium, 9/29/2009 sale of company & IPO. In a somewhat complicated deal (we’ve seen worse), a Greenhill (investment bank) sponsored SPAC (Special Purpose Acquisition Company) acquired the up and down (yes, a pun) satellite company Iridium for $539M (a unique Chessiecap calculation).  It took just over a year from announcing the deal to completing it.  Naturally, given the industry, we are talking about government approvals, shareholder approvals, etc.  Oh, and if that wasn’t enough work for lawyers, bankers and accountants, Greenhill immediately took the new buyout company public at a new valuation of $682M market capitalization.  Same company, just worth $143M more, mostly in cash, all in the same week.  It is not all smoke and mirrors.  After a shaky recent past when the company almost vaporized, Iridium has been printing money based on current satellites and interesting applications.  But the future will require some serious new investment ($ billions) in new satellites and launches.  Greenhill sponsorship and revitalized management adds value in accomplishing that strategic plan.  It took over a year for this transaction to happen.  It worried us that the investment bankers involved might have to sell homes in the Hamptons while waiting for this payday.  We hope it all worked out for them.

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