TS News - Hughes Buys PanAmSat
From: firstname.lastname@example.org (Martyn Williams)
Date: Sun, 29 Sep 1996 15:35:53 +0900
From email@example.com Sun Sep 29 02: 49:28 1996
TELE-satellit News, 29 September 1996
Hughes Buys PanAmSat
NEW YORK, New York, USA, 96/09/20 (SatND) -- Hughes Electronics Corp. will
buy the satellite operator PanAmSat Corp. for US$3-billion. The deal that
will create the World's second-largest satellite network was officially
announced by both companies September 20.
As expected Hughes Communications Galaxy (HCG) and PanAmSat will together
form a new public company under the name of PanAmSat. Current PanAmSat
stockholders will receive $1.5 billion in cash and 28.5 percent of the new
company while Hughes Electronics initially owns 71.5 percent.
Mexico's Grupo Televisa, one of the major PanAmSat shareholders, will buy
back PanAmSat's options to obtain equity interests in Spanish-speaking
direct-to-home ventures in the Americas and Spain.
Hughes, a subsidiary General Motors Corp., is the world's largest
manufacturer of satellites, serving more than 50 percent of the market.
Panamsat, the world's largest private satellite company, was put up for sale
in April by the heirs of its founder Rene Anselmo, following pressure from
the company's other main shareholder, Grupo Televisa SA, which is urgent
need for some cash. They will get it, probably US$600 million plus an 8.5
percent equity interest in the new company.
"By combining Hughes' and PanAmSat's strengths in domestic and global
satellite communications, we will be bringing a new level of service to our
customers throughout the world," said C. Michael Armstrong, chairman and
chief executive officer of Hughes Electronics.
"The strategic combination creates the premier commercial provider of
global satellite-based communications services," said Frederick A. Landman,
current president and chief executive officer of PanAmSat. He will also be
president and chief executive officer of the new company.
(c)TELE-satellit 1996. All rights reserved.
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