Flextronics buys 55% in Hughes Software

The Singapore-based electronics services manufacturing company Flextronics on Tuesday acquired 55 per cent stake in Hughes Software for about $226 million.

Announcing this in New Delhi, Arun Kumar, president and managing director of Hughes Software, said: "Flextronics, Direct TV Group and Hughes Network Systems have signed an agreement whereby Flextronics will acquire HNS' entire ownership stake of 55 per cent in HSS."

Flextronics has paid Rs 547 per share and would be making an open offer for another 20 per cent in the next four days as per the Sebi rules.

Subject to regulatory approval, the transaction is expected to close by October 2004.

The approximate total purchase price of $226 million to be paid to HNS along with the open offer of $82 million, assuming an offer price of Rs 547 per share, is required to be funded by Flextronics on the date the open offer is initiated.