Gilat Satcom (TASE: STCM) announced today that it has received a written proposal to buy approximately 80% of SkyVision Holdings Ltd.
Gilat Satcom a provider of satellite broadband services in the developing world.
SkyVision provides international Internet services over satellite and terrestrial fibre optic systems, operating in Eastern Europe, the Balkans, Russia, Ukraine, the Mediterranean basin, East Asia and Africa.
According to the proposal, SkyVision's shareholders have offered to sell their shares, amounting to 80% of SkyVision, to Gilat Satcom for a sum based on $2 million company value (fully diluted).
The sellers proposed that Gilat Satcom pay half of the consideration for the SkyVision shares in cash, with the remaining consideration paid in shares issued by Gilat Satcom.
Gilat Satcom stated that it is evaluating the proposal. If the transaction occurs, it is possible that Gilat Satcom may acquire up to 100% of SkyVision.
If the transaction occurs, Gilat Satcom stated, it will be conditional upon, among other things, due diligence, the signing of a binding agreement, and the receipt of any necessary approvals.
Published by Globes [online], Israel business news - www.globes.co.il - on Thursday, September 29, 2005