Discount Investment, controlled by Eduardo Elsztain, announced last night that it had made an offer to Eurocom to buy from it the controlling interest (54.7%) in satellite company Spacecom Satellite Communications Ltd. (TASE:SCC) for NIS 160 million. The offer values Spacecom at a level similar to its current market cap.
Spacecom's share price has soared in the wake of the offer, and is currently up by more than 21%.
The offer is subject to several preconditions, among them a due diligence examination, court approval, and regulatory approvals. Discount Investment says that if a deal is completed, it will take steps to maintain its liquidity and leverage ratios.
Discount Investment's offer to buy Spacecom comes a few weeks after it offered to buy the Eurocom group in its entirety in the context of the latter's debt arrangement with the banks. This offer was withdrawn because of difficulties in connection with Eurocom's main holding: control of Internet Gold Golden Lines Ltd. (Nasdaq: IGLD; TASE:IGLD), which indirectly controls Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ).
Discount Investment controls telecommunications company Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL), and the banks therefore demanded high guarantees for the execution of the deal, to which Discount Investment objected.
Published by Globes [online], Israel business news - www.globes-online.com - on March 27, 2018
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