Pegasus To Buy Golden Star For About $1B
techweb.com
(01/11/00, 12:33 p.m. ET)
By Reuters
BALA CYNWYD, PA. -- Pegasus
Communications, a provider of direct broadcast
satellite television, said Tuesday it would
acquire privately held Golden Sky Holdings for
about $1 billion in stock and debt.
The combined operations of Bala Cynwyd, Pa.-based
Pegasus and Golden Sky will serve in excess of 1.1
million subscribers in 41 states and reach approximately
7.2 million rural households, making Pegasus the third
largest provider of direct broadcast satellite and the
eighth largest multichannel provider in the United States,
including satellite and cable.
Pegasus, which focuses on providing service in rural
areas, will issue 6.5 million shares of its Class A
common stock, currently valued at $632 million based
on Monday's closing share price of $97.25, to Kansas
City, Mo.-based Golden Sky's shareholders.
It will also assume Golden Sky's net debt and other
liabilities, which were approximately $373 million as of
Sept. 30, 1999.
The transaction was approved by the boards of
directors of both companies, Pegasus said. Pending
shareholder and certain other approvals, the transaction
is expected to close during the second quarter.
In a separate deal, Pegasus also plans to sell its Puerto
Rico cable system to Centennial de Puerto Rico, a unit
of Centennial Cellular, for $170 million in cash.
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