KKR Acquires PanAmSat For $4.3 Billion

By | April 20, 2004 | Uncategorized

Officials from PanAmSat Corp. [SPOT] and its 80.5-percent shareholder The DirecTV Group [DTV] today said they signed a definitive transaction agreement with affiliates of Kohlberg Kravis Roberts & Co. (KKR) for the sale of PanAmSat at $23.50 per share. The aggregate transaction value, including the assumption of approximately $750 million of net debt, is approximately $4.3 billion. The transaction is subject to applicable regulatory approvals, including those from the Federal Communications Commission (FCC) as well as from PanAmSat shareholders. The purchase should be completed in the second half of this year.

As part of the transaction, The DirecTV Group agreed to extend and enhance certain agreements between itself and PanAmSat in order to assure future revenue flows to PanAmSat and for continuity of services for The DirecTV Group’s Hughes Network Systems and DirecTV Latin America.

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