Comsat sells division to TBG Industries


March 18, 1998

Comsat Corp. said yesterday that it has sold its RSI telecommunications equipment company to TBG Industries Inc. for about $116.5 million.

Bethesda-based Comsat announced last March that it would sell RSI to focus on its satellite communications service and digital networking businesses.

Comsat provides voice, video and data services through its satellites.

Comsat said it will use proceeds from the sale to repay debt. The final price may be adjusted to take into account loans and advances from Comsat to RSI.

Comsat has carried RSI on its books as discontinued operations since June. Closing of the sale to closely held TBG is expected by June 30.

As part of the agreement, Comsat will retain and complete a construction contract for a radio telescope in Green Bank, W. Va.

RSI's main business is the manufacturing of earth stations for satellites and the production of wireless and advanced antenna systems.

Comsat's shares rose 31.25 cents to $34.75 in trading of 270,200 shares yesterday, compared with its three-month daily average of 267,000 shares.

Pub Date: 3/18/98

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