Telesat, MDA Space shares soar on news of satellite contract with Canada’s Armed Forces
Telesat and MDA Space shares surged following a $2.7-billion contract from the Canadian government to provide secure satellite communications for the Armed Forces in the Arctic. The deal involves expanding the Lightspeed satellite network to bolster national sovereignty.
Why it matters
The contract represents a major investment in Arctic defense and space infrastructure, significantly impacting the market valuation of the involved Canadian aerospace companies.
Telesat CEO Dan Goldberg speaks at a news conference in Ottawa in July, 2019. Sean Kilpatrick/The Canadian Press
Shares of Telesat Corp. TSAT-T and MDA Space Ltd. MDA-T skyrocketed after Ottawa and the Canadian companies struck a deal to establish secure military satellite communications in the Arctic.
In a push to defend sovereignty in the Arctic, Ottawa’s Defence Investment Agency awarded a contract worth as much as $2.7-billion to Telesat LEO ULC, a division of Canada’s largest satellite operator, to expand its lightspeed low Earth orbit constellation.
The announcement on Tuesday morning sent Ottawa-based Telesat’s stock up 47 per cent and closed at $76.84. Shares of MDA Space, which will supply Telesat with its satellites, surged more than 13 per cent and settled at $48.10.
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