Asia Satellite (01135.HK) said that it has entered into a co-operation agreement with Thaicom Public Company Limited, an independent third-party, to jointly develop, build and share in the development cost, ownership and use of a new communications satellite, designated as "AsiaSat 6", for deployment at the orbital location of 120°E in the geostationary arc subject to the fulfillment of certain conditions, including the obtaining of approvals from relevant government authorities.

Asia Satellite shall be responsible for the design, construction and launch of the satellite, and Thaicom shall bear part of the cost incurred which shall be determined in accordance with the terms of the co-operation agreement, in return for the ownership and exclusive right to utilize a portion of the transponders of the satellite.

The co-operation agreement has also provided for an opportunity to develop a further satellite to replace the satellite.