RTTNews | Nov 24, 2020 09:58AM EST

09:58 Tuesday, November 24, 2020 (RTTNews.com) - Shares of Loral Space & Communications Inc. (LORL) jumped nearly 20% on Tuesday morning after the satellite communications company signed a deal with the Public Sector Pension Investment Board and Telesat Canada to combine Loral and Telesat into a new public company.

LORL is currently trading at $23.49, up $3.90 or 19.91%, on the Nasdaq.

Loral holds a 62.7 percent economic interest Telesat Canada, an operator of telecommunications and direct broadcast satellites.

Under the plan, Loral shareholders, together with PSP Investments and certain current and former management shareholders of Telesat will own the new company in approximately the same proportion as their current, indirect ownership in Telesat.

Loral also announced a special dividend of $1.50 per share.

Loral Space & Communications offers satellite-based communications services to the broadcast, telecom, corporate, and government customers worldwide.

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