EchoStar Corp. on Aug. 9 revealed details of its plans for its broadcast satellite service business.
Earlier in 2019 DISH Network Corp. struck a deal to acquire EchoStar's broadcast satellite service division in a tax-free, all-stock deal valued at about $800 million.
EchoStar has set a record date of Aug. 19 for the spinoff of the portion of its EchoStar satellite services business that manages, markets and provides broadcast satellite services mainly to DISH, DISH Mexico SA de CV and their respective subsidiaries; and telemetry, tracking and control services to satellites owned by DISH and a portion of EchoStar's other businesses, and certain related assets and operations.
EchoStar will distribute to each holder of shares of class A or class B common stock of EchoStar as of the close of business on the record date a number of shares of common stock of EchoStar BSS Corp., a wholly owned subsidiary of EchoStar that will, after an internal restructuring, own and operate the BSS business, equal to 1 share of BSS common stock for each share of EchoStar class A or class B common stock then held by each such EchoStar stockholder.
After the distribution, a DISH unit will merge with and into BSS Corp., and BSS Corp. will continue as a wholly owned subsidiary of DISH. In the merger, each EchoStar stockholder as of the close of business on the record date will receive, for each share of BSS common stock, a number of shares of DISH class A common stock equal to 22,937,188 divided by the total number of shares of EchoStar class A and class B common stock outstanding as of such time.
Based on the number of shares of EchoStar class A and class B common stock outstanding on Aug. 8, EchoStar stockholders would receive about 0.24 of a share of DISH class A common stock for each share of EchoStar class A or class B common stock held by each such EchoStar stockholder as a result of these transactions.
The distribution and merger are currently expected to be completed no earlier than Sept. 10, subject to the satisfaction or waiver of certain closing conditions.