Dish bonds rally with stock after all-stock merger with EchoStar

  • 📰 MarketWatch
  • ⏱ Reading Time:
  • 49 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 23%
  • Publisher: 97%

South Africa News News

South Africa South Africa Latest News,South Africa South Africa Headlines

Billionaire Charlie Ergen's decision to combine his two telecom companies, Dish Network Corp. and EchoStar Corp., in an all-stock deal sent their shares higher on Tuesday. The news also sparked a rally in the company's bonds.

Billionaire Charlie Ergen’s decision to combine his two telecom companies, pay-TV provider Dish Network Corp. and satellite-communications company EchoStar Corp. in an all-stock deal sent their shares higher on Tuesday.The companies earlier confirmed a report by the Wall Street Journal... Billionaire Charlie Ergen’s decision to combine his two telecom companies, pay-TV provider Dish Network Corp. and satellite-communications company EchoStar Corp.

The exchange ratio is equal to a premium of 12.9% over the unaffected 30-day volume weighted average closing stock prices of the two companies on July 5, the last full trading day before media speculation regarding a potential transaction. “The transaction combines DISH Network’s satellite technology, streaming services and nationwide 5G network with EchoStar’s premier satellite communications solutions, creating a global leader in terrestrial and non-terrestrial wireless connectivity,” the companies said in a joint statement.

It’s expected to generate significant cost and revenue synergies and enhance free cash flow. “This is a strategically and financially compelling combination that is all about growth and building a long-term sustainable business,” said Ergen.Dish’ stock was last up 8% on Tuesday. As the following chart from data-as-a-service company BondCliQ Media Services shows, there was mostly net selling on Tuesday into the rally.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 3. in ZA
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

South Africa South Africa Latest News, South Africa South Africa Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Charlie Ergen Plans All-Stock Merger of Dish Network and EchoStarBillionaire satellite TV mogul, Charlie Ergen, is proposing a merger of his businesses, Dish Network and EchoStar, in an all-stock deal. The transaction is expected to generate cost and revenue synergies, enhance free cash flow generation, and create long-term value for shareholders and stakeholders.
Source: THR - 🏆 411. / 53 Read more »