Hungary’s 4iG eyes control of Israeli satellite firm Spacecom
Shares surge in Tel Aviv, following news of the signing of a non-binding letter of intent for acquisition of 51% stake for NIS 215 million ($66 million)
Shoshanna Solomon was The Times of Israel's Startups and Business reporter
Hungarian communications firm 4iG Plc is in talks to buy a 51% stake in Israel’s Spacecom Satellite Communications Ltd. through a private placement of shares, the Israeli supplier of satellite services and the operator of the AMOS fleet of satellites said in a filing to the Tel Aviv Stock Exchange.
Spacecom shares were trading 18% higher at 11:02 a.m. in Tel Aviv to NIS 6.9 a share, following the news that the firm has signed a non-binding letter of intent with the Budapest-based company for the acquisition of a stake in the firm for NIS 215 million ($66 million), reflecting a price of NIS 8.5 per share.
The proposed acquisition price is at a 68% premium to that of the average share price of the company on the TASE over the past six months and 46% over its closing price on Monday.
As part of the agreement, the parties have stipulated not to negotiate with other entities. The deadline for signing a deal is August 15.
An eventual contract would be subject to regulatory approvals.
4iG is a Hungarian information technology and communications firm, whose shares are publicly traded on the Budapest Stock Exchange.
Spacecom, which started operations in 1993, operates the AMOS fleet of four communication satellites that serve Europe, Africa, the Middle East and Asia. Customers include satellite TV operators, internet and telephone providers, governments and private data companies. The controlling shareholder of Spacecom is Eurocom Holdings Ltd., which is now in the hands of a receiver. Eurocom was controlled by businessman Shaul Elovitch, who is on trial for on fraud and breach of trust charges.
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