FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington DC 20549
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of December 2005
Commission File Number: 1-14396
ASIA SATELLITE TELECOMMUNICATIONS HOLDINGS LIMITED
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(Translation of registrant's name into English)
17/F, The Lee Gardens, 33 Hysan Avenue, Causeway Bay, Hong Kong
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover Form 20-F or Form 40-F.
Form 20-F [X] Form 40-F [_]
Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(1). __
Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a
Form 6-K if submitted solely to provide an attached annual report to security
holders.
Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(7): __
Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a
Form 6-K if submitted to furnish a report or other document that the registrant
foreign private issuer must furnish and make public under the laws of the
jurisdiction in which the registrant is incorporated, domiciled or legally
organized (the registrant's "home country"), or under the rules of the home
country exchange on which the registrant's securities are traded, as long as the
report or other document is not a press release, is not required to be and has
not been distributed to the registrant's security holders, and, if discussing a
material event, has already been the subject of a Form 6-K submission or other
Commission filing on EDGAR.
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Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes [_] No [X]
If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b):_________.
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Information furnished on this form:
Announcement, dated November 25, 2005, by the Registrant disclosing the
Company's Decision Not to Procure In-Orbit Insurance for AsiaSat 2.
EXHIBIT
EXHIBIT NUMBER PAGE
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1.1 Announcement, dated November 25, 2005, by the Registrant 5
disclosing the Company's Decision Not to Procure In-Orbit
Insurance for AsiaSat 2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
ASIA SATELLITE TELECOMMUNICATIONS HOLDINGS LIMITED
(Registrant)
Date: December 30, 2005 By: /s/ Peter Jackson
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Peter Jackson
Chief Executive Officer
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EXHIBIT 1.1
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[GRAPHIC OMITTED][LOGO - AsiaSat]
ASIA SATELLITE TELECOMMUNICATIONS HOLDINGS LIMITED
[CHINESE CHARACTERS OMITTED]
(INCORPORATED IN BERMUDA WITH LIMITED LIABILITY)
(STOCK CODE: 1135)
ANNOUNCEMENT
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The Board of Directors of the Company announces that the Company has opted not
to procure In-Orbit Insurance for AsiaSat 2 in light of the extremely high
insurance rates and the very restrictive conditions being imposed.
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This announcement is made pursuant to rule 13.09 of the Rules Governing the
Listing of Securities on The Stock Exchange of Hong Kong Limited for the purpose
of providing information on the Company's decision with respect to the In-Orbit
Insurance of AsiaSat 2.
BACKGROUND
AsiaSat 2 was launched on 28 November 1995 and is located in the geostationary
orbit at 100.5 degrees East. It is a series 7000 model satellite designed and
produced by the satellite manufacturer, Lockheed Martin of the USA. AsiaSat 2
has an estimated design life of 13 years from the date of commissioning, namely
January 1996.
As at 28 November 2005, the net book value of AsiaSat 2 stands approximately at
US$32 million (equivalent to HK$250 million), which will be amortised over the
remaining life period of 38 months.
Historically the Company has insured its satellites for not less than their net
book value.
IN-ORBIT INSURANCE
As a result of a number of reported mechanical failures to the Lockheed Martin
series 7000 satellites over the past few years, the latest In-Orbit Insurance
rates for AsiaSat 2 without exclusions of coverage have increased significantly.
Given the present low book value of AsiaSat 2 and the Company's strong cash
position, the Directors have determined that not procuring In-Orbit Insurance
for AsiaSat 2 would be economically prudent and in the best interest of the
Group in light of the extremely high rates and the overly restrictive conditions
being imposed.
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When satellite operators renew in-orbit insurance for their satellites, they
weigh the cost of insurance against the risk of loss and the benefit of
insurance. It is not uncommon for satellite operators to determine that it is
more cost effective not to procure insurance for part or all of their satellite
fleet.
In the event of mechanical failure resulting in a total loss of AsiaSat 2, the
Company would incur a loss of HK$250 million, or equal to its net book value at
the time the total loss occurs. The Company is presently debt free and has
approximately US$193 million (or HK$1,505 million) in cash and cash equivalents.
INVESTORS ARE ADVISED TO EXERCISE CAUTION WHEN DEALING IN THE SECURITIES OF THE
COMPANY.
DEFINITIONS
Terms used in this announcement shall have the following meanings:
"AsiaSat 2" the series 7000 satellite designed and manufactured by
Lockheed Martin, which was launched by the Company and
located in the geostationary orbit at 100.5 degrees East;
"Company" Asia Satellite Telecommunications Holdings Limited; a
company incorporated in Bermuda with limited liability;
"Directors" the directors of the Company;
"Group" the Company and its subsidiaries;
"HK$" Hong Kong dollars;
"In-Orbit insurance covering the loss of a satellite during the
period when the Insurance" satellite is in-orbit, and is
usually renewed on an annual basis;
"US$" United States dollars.
FOR THE PURPOSE OF THIS ANNOUNCEMENT AND FOR REFERENCE ONLY, THE EXCHANGE RATE
ADOPTED IS US$1.00 TO HK$7.80.
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By order of the Board
DENIS LAU
COMPANY SECRETARY
Hong Kong, 25 November 2005
As at the date of this announcement, the Board comprises the following
directors:
EXECUTIVE DIRECTORS:
Mr. Peter JACKSON (CHIEF EXECUTIVE OFFICER)
Mr. William WADE (DEPUTY CHIEF EXECUTIVE OFFICER)
NON-EXECUTIVE DIRECTORS:
Mr. Romain BAUSCH (CHAIRMAN) Mr. MI Zeng Xin (DEPUTY CHAIRMAN)
Mr. Robert BEDNAREK Mr. DING Yu Cheng
Ms. Cynthia DICKINS Mr. JU Wei Min
Mr. Mark RIGOLLE Mr. KO Fai Wong
INDEPENDENT NON-EXECUTIVE DIRECTORS:
Prof. Edward CHEN
Mr. R. Donald FULLERTON
Mr. Robert SZE