Hungarian communications company 4iG is negotiating to buy 51% of Israeli company Spacecom Satellite Communications Ltd. (TASE:SCC) through a private placement of shares. The two companies have signed a non-binding memorandum of understanding. Spacecom operates the Amos fleet of satellites.
If the deal is completed, the price will be NIS 215 million, or NIS 8.5 per share. This represents a premium of 68% over Spacecom's average share price on the Tel Aviv Stock Exchange in the past six months, and of 46% over its closing price yesterday.
Spacecom's share price is up by more than 24% this morning, at NIS 7.25.
4iG is a public company traded on the Budapest Stock Exchange active in information technology and telecommunications.
Completion of the deal depends on finalization of the negotiations, due diligence, regulatory approvals, including by Israel's Ministry of Communications, approval by Spacecom's shareholders, consent of third parties as required, and the signing of binding agreements including a deal for provision of services by Spacecom to iG4. Under the MOU, the deadline for signing the deal is mid-August 2021.
Spacecom CEO Dan Zajicek said, "This is a significant vote of confidence in the company and its activity and an important step in the implementation of our strategic plans. The entry of iG4 as owner will assist in realizing Spacecom's strategic plan, the main plank of which is a switch from provision of satellite capacity to the provision of telecommunications services via satellite."
Published by Globes, Israel business news - en.globes.co.il - on June 15, 2021
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