Ergen creates Conx for telco acquisitions
October 5, 2020
Charlie Ergen has filed documents with the US Securities & Exchange Commission to create a public company called Conx. Ergen is using Conx as a SPAC (a Special Purpose Acquisition Company) as the shell vehicle for his move.
Conx is offering 100 million shares (and possibly up to 115 million) at $10 each as part of the IPO.
The new company’s aim is to raise $1.1 billion and then use those funds to make acquisitions in the telecom sector. The document talks of effecting a merger, asset acquisition, stock purchase, identifying possible targets and similar statements relating to a new business.
Ergen would control the new business which would be listed on the NASDAQ as ‘Conx’.
The filing adds: “We may pursue an initial business combination opportunity jointly with an entity to which an officer or director has a fiduciary or contractual obligation, which may include DISH and EchoStar.”
Currently Ergen owns 52 per cent of Dish Network’s equity although he holds 91 per cent of Dish’s voting rights. He also owns 51 per cent of EchoStar and controls 90.9 per cent of EchoStar’s voting rights.