spacetoday.net: Equity firm KKR to buy PanAmSat

Posted: Tue, Apr 20, 2004, 12:51 PM ET (1651 GMT)
Private equity firm Kohlberg Kravis Roberts and Co. (KKR) has agreed to acquire satellite communications company PanAmSat for an estimated $4.3 billion, parties to the deal announced Tuesday. Under the agreement KKR will pay $23.50 per share for PanAmSat from News Corporation, or $3.55 billion, and will also assume $750 million in debt for a total value of $4.3 billion. News Corp. had an 81% stake in PanAmSat after it acquired a controlling interest in PanAmSat's corporate parent, Hughes Electronics, last year. News Corp. had been actively seeking to sell the satellite operator, soliciting bids from several companies. News Corp. plans to use proceeds of the sale to invest in satellite television provider DirecTV. The Wall Street Journal reported that the acquisition of PanAmSat by KKR will likely mean continued cost cutting and reduced capital outlays at the Connecticut-based company.