EchoStar Corporation (NASDAQ: SATS) has executed an agreement with DISH Network Corporation (NASDAQ: DISH) to exchange its EchoStar Technologies businesses for the Hughes Retail Group (HRG) tracking stock, the company said.
The HRG tracking stock was issued to subsidiaries of DISH in March 2014. It represents an 80% interest of the economic performance of the consumer retail satellite broadband business of EchoStar´s Hughes segment.
The EchoStar Technologies businesses consist of the business segment of EchoStar that designs, develops and distributes digital set-top boxes, provides satellite uplinking and broadcast services and develops and supports streaming video technology, with DISH being the largest customer of these services.
The transaction will include certain other EchoStar investments in joint ventures, spectrum licenses and certain real estate properties.
The transaction will take the form of an exchange by EchoStar of two companies that will own the EchoStar Technologies businesses and other assets to be transferred for the HRG tracking stock, and is structured in a manner to be a tax-free exchange. It is expected to close during the first quarter of 2017, subject to customary conditions. Following the closing, the HRG tracking stock will be retired.
EchoStar Corporation provides satellite and video delivery solutions. Headquartered in Englewood, Colo., and conducting business around the globe, EchoStar is a pioneer in secure communications technologies through its EchoStar Satellite Services, EchoStar Technologies and Hughes Network Systems business segments.