Steve Mehs
12-19-02, 04:26 AM
EchoStar said it agreed to repurchase Vivendi Universal's interest in the satellite TV company.
As part of the transaction, Vivendi Universal will convert its Series D Convertible Preferred Stock into about 57.6 million shares of EchoStar Class A common stock. The shares will then immediately be acquired by EchoStar at a price of $18.50 per common share, for a total transaction price of approximately $1.066 billion.
The transaction will close Dec. 23, the companies said.
As a result of the transaction, Vivendi Universal's contingent value rights under the original investment will be terminated. The termination will result in an approximate $170 million non-cash gain for EchoStar for the present quarter.
The French/Hollywood media giant paid $1.5 billion for a 10 percent stake in EchoStar last year to help fund the satellite TV company's failed merger with DirecTV. EchoStar's gain from the Vivendi investment will help fund about two-thirds of the $600 million break-up fee it was required to give DirecTV parent Hughes after the failed merger attempt.
From SkyReport (http://www.skyreport.com/skyreport/dec2002/121902.shtm#one) (Used with Permission)
As part of the transaction, Vivendi Universal will convert its Series D Convertible Preferred Stock into about 57.6 million shares of EchoStar Class A common stock. The shares will then immediately be acquired by EchoStar at a price of $18.50 per common share, for a total transaction price of approximately $1.066 billion.
The transaction will close Dec. 23, the companies said.
As a result of the transaction, Vivendi Universal's contingent value rights under the original investment will be terminated. The termination will result in an approximate $170 million non-cash gain for EchoStar for the present quarter.
The French/Hollywood media giant paid $1.5 billion for a 10 percent stake in EchoStar last year to help fund the satellite TV company's failed merger with DirecTV. EchoStar's gain from the Vivendi investment will help fund about two-thirds of the $600 million break-up fee it was required to give DirecTV parent Hughes after the failed merger attempt.
From SkyReport (http://www.skyreport.com/skyreport/dec2002/121902.shtm#one) (Used with Permission)