EchoStar Closing Spinoff of Equipment Business

EchoStar Communications Corp., the nation’s second-largest satellite-television company, will complete the planned spinoff of its equipment business from the Dish Network on Tuesday.

For each share held as of Dec. 27, EchoStar Communications investors will receive 0.2 share of EchoStar Holding Corp., the new publicly traded company that will include the broadcast- satellite receiver, antennae and commercial satellite businesses, the company said in a Dec. 28 statement.

The remaining business, focused on satellite-TV, will change its name to Dish Network Corp. after the separation is completed and continue to trade under the “DISH” symbol.

EchoStar, based in Englewood, Colo., announced the possibility of a split in September, when CEO Charles Ergen said the separation would increase the value of the company and help finance expansion. Ergen said he will remain CEO and chairman of both companies.

Trading of EchoStar Holding Corp. Class A shares under the symbol “SATS” is expected to begin Wednesday on the Nasdaq Stock Market. The holding company will later change its name to EchoStar Corp., according to a regulatory filing Monday.

Originally published by Bloomberg, AP and Staff Reports.

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