Company: SGBAF
Filing Date: 2025-04-23
Form Type: DRS/A
Source: 0000950123-25-003652
Chunk: 175

Company: SES S.A.
Filing Date: 2025-04-23
Form: DRS/A
Chunk 175
---
 completion of milestones associated with the Applicable Spectrum re-purposing and all associated costs, disbursements and taxes arising have been deducted. |

With regards to the preliminary fair value of the CVRs, management calculated it using a probability-weighted model and was required to make certain assumptions in estimating a reasonable fair value which included the following:

| i. | a range of potential prices($/MHz) associated with the Applicable Spectrum; |

| ii. | a probability of the FCC receiving auction authority to repurpose all or part of the Applicable Spectrum; |

| iii. | an assessment of the amount of the Applicable Spectrum to be repurposed under the FCC’s auction authority; |

| iv. | an assessment of the estimated average Accelerated Relocation Payments (“ARPs”) as a percentage of 
 the proceeds and the relative share for the combined entity of SES and Intelsat;                   |

| v. | a probability of the satellite operators, including SES, being able to successfully clear portions of the 
 Applicable Spectrum in a timely and orderly manner;                                                       |

| vi. | an assessment of an estimated tax rate to be applied to any proceeds; |

| vii. | an assessment of the phases and timing of receipt of the proceeds; |

| viii. | an assessment of a discount rate to be applied to the future proceeds; and |

| ix. | a probability of the 42.5% pay-out to the CVR holders. |

As of the submission of this Form F-4,the situation concerning points i) to ix) above is uncertain. Management’s internal valuation considered the precedent benchmark of the C-bandrepurposing program initiated by the FCC on 28 February 2020 to clear the 300 MHz band of C-bandspectrum between 3,700 and 4,000 MHz by December 2025 (“3.7 GHz Service Auction”) in combination with assumptions concerning the likely outcomes of the factors listed above, including inputs from economic spectrum experts. Specifically, management has assumed a similar compensation mechanism for satellite operators as was seen for 3.7 GHz Service Auction and a similar timeframe and timing of cash flows resulting in an aggregate probability of >50% that such a programme in this form shall be initiated and successfully completed. For the purposes of the pro forma information, the internal valuation resulted in a pro forma preliminary fair value of $552 million (equivalent of €531 million), which has been recorded as a “contingent value rights” non-currentliability and