China’s Xinwei buys Israel’s Spacecom for $190 million

Chinese telecommunications company Beijing Xinwei Technology Group will buy Israeli satellite communications company, Spacecom, for U.S.$190 million, according to Israeli press reports.

Beijing Xinwei Technology Group was originally going to pay U.S.$285 million for Spacecom, contingent upon the successful launch of Spacecom’s Amos-6 communications satellite. The
Amos-6 communications satellite was destroyed when a static engine test of a SpaceX Falcon-9 rocket went wrong at Cape Canaveral Air Force Station in Florida, United States, on 1 September 2016.

The Amos-6 satellite was due to be launched from Florida on the SpaceX Falcon-9 on 3 September 2016. Once Amos-6 was successfully launched, it would have triggered the sale of Spacecom to Beijing Xinwei Technology Group for U.S.$285 million. With the destruction of Amos-6 that sale price became moot, and the new sale price of U.S.$190 million represents Beijing Xinwei Technology Group’s latest valuation of Spacecom.

The new deal is obviously well below the U.S.$285 million sale price agreed between Spacecom shareholders and Beijing Xinwei Technology Group in August 2016. The destruction of Amos-6 on its Cape Canaveral launch-pad led to a dramatic devaluation of Spacecom’s stock on the Tel Aviv Stock Exchange, and forced Beijing Xinwei Technology Group to reconsider their position.

Some of Spacecom’s Ku-band clients on AMOS-2 that were to be relocated to AMOS-6 have been relocated to AMOS-3. For others, Spacecom has helped find capacity on other satellites or possibly on a satellite that will be relocated, either permanently or temporarily, to the 4°West orbital position.

Original published at: http://spacewatchme.com/2016/12/chinas-xinwei-buys-israels-spacecom-190-million/