Foreign co in talks to buy Spacecom for $285m

Shaul Elovitch

Shaul Elovitch has been trying to sell Spacecom, which operates the AMOS communications satellites, since 2013.

Spacecom Satellite Communications Ltd. (TASE:SCC) notified the Tel Aviv Stock Exchange (TASE) today that it is in talks to be fully acquired by an international company for $285 million. Such a price was a 30% premium on the share's market price this morning, and in response the share price rose 10% today.

Spacecom, which operates the AMOS series of communications satellites, is owned by Eurocom Group, which is controlled by Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ) controlling shareholder Shaul Elovitch.

Spacecom has been up for sale since 2013 and the company has reported offers to acquire it in the past. There have also been reports of talks with various buyers but nothing has come to fruition.

Last week Spacecom reported its second quarter financials, with revenue up 36% to $17 million and net profit of $5 million after a $5 million loss in the corresponding quarter of 2015.

Last month Spacecom signed a multiyear deal with the Israeli government to provide satellite services worth $63 million.

Published by Globes [online], Israel business news - www.globes-online.com - on August 23, 2016

© Copyright of Globes Publisher Itonut (1983) Ltd. 2016

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Shaul Elovitch
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