Spacecom announced that Hungary’s 4iG is negotiating to take a majority 51 percent stake in the Israel-based satellite services company. 4iG is expected to pay around USD 65 million (ILS 215 million), based on a price of USD 2.62 per share. This is some 68 percent higher than the average share price during the past six months.
The investment will be conducted via a private placement of shares. The deal's completion is conditional on further negotiations, due diligence, regulatory approvals – including Israel’s Communications Ministry – approval by Spacecom’s shareholders, and agreement by certain third parties currently contracted with Spacecom. Mid-August is the deadline for meeting these conditions, as decided upon and signed by both parties in a non-binding letter of intent.
Spacecom said the takeover will support its strategic transition from a satellite capacity provider to communications service provider. 4iG recently completed the takeover of Hungaro Digitel, a satellite company in Hungary, giving it a state contract to launch a new national satellite. This would be designed by Spacecom and orbit at 4 degrees Wast, the same as the Spacecom satellite Amos-3 launched in 2008.
