Spacecom mulls sale or merger

Sources: A deal, if executed, will be made at a company value of $500-600 million, more than double its market cap of NIS 1 billion.

The share price of Spacecom Satellite Communications Ltd. (TASE:SCC), the operator of the Amos family of communications satellites, corrected downwas 2.8% by mid-afternoon today, after rising 8% yesterday, after it notified the TASE that its board of directors had decided to consider the sale or merger of the company. It has hired JPMorgan to advise it on the matter.

Spacecom, controlled by Shaul Elovitch through Eurocom Holdings (1979) Ltd., which also indirectly controls Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ), added in the notice to the TASE the caveat, "The process review is in the earliest stages and there is no certainty that a deal will be carried out."

Sources believe that a deal, if executed, will be made at a company value of $500-600 million, more than double its market cap of NIS 1 billion. The estimates are based on prices for other deals in the global satellite communications market, which is dominated by companies much larger than Spacecom, and which may explain the reason for the decision on a possible sale.

Published by Globes [online], Israel business news - www.globes-online.com - on December 12, 2013

© Copyright of Globes Publisher Itonut (1983) Ltd. 2013

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