Hughes To Buy Panamsat Satellite Unit

Under the agreement, the Hughes Communications Galaxy business of Hughes Electronics will merge with Greenwich, Connecticutt-based PanAmSat to create a new company called PanAmSat Corp., the companies said.

PanAmSat shareholders will get a total of $1.5 billion in cash and 28.5 per cent of the new company. Hughes Electronics, a unit of General Motors Corp., will own 71.5 per cent of the new company immediately after the merger.

The new company will combine HCG's fleet of 10 communications satellites for the US market with PanAmSat's fleet of four communications satellites.

PanAmSat has four satellites under construction and HCG has three satellites in development, all of which are planned for launch through 1998.

PanAmSat and HCG had combined 1995 revenues of approximately $500 million.

HCG is a leading provider of commercial video, voice and data satellite communications services in the US. Its Galaxy fleet serves premier cable and broadcast television programmers, with access provided by HCG's Galaxy Network Operations unit in Long Beach, California.

Corporate headquarters of the new PanAmSat Corp. will be in Greenwich.