fb
EUSI Banner_ Oct 2021

Israel’s Spacecom Could Finally Have a Buyer in IDB

Image courtesy of Spacecom.

Troubled Israeli satellite communications company Spacecom could finally have a buyer, but at a much lower price tag than it sought last year.

Last week, Israel-based holding company IDB made an offer for a controlling stake in Spacecom, offering U.S.$45.75 million for a 54.7% undiluted stake and an equity infusion of as much as U.S.$11.45 million. According to a report published on calcalist.com, further negotiations have resulted in IDB’s subsidiary, Discount Investment Corporation, agreeing to an equity infusion of up to U.S.$34 million.

Spacecom, operator of the Israeli AMOS communication satellites, is a subsidiary of Eurocom Group, the controlling stakeholder of Israel’s largest telecommunication provider, Bezeq. Together with its subsidiaries, Eurocom and its co-owner Shaul Elovitch owe a debt of around U.S.$420 million to institutional creditors, including Israel’s three largest banks.

Spacecom’s AMOS-6 satellite was destroyed in 2016 in a pre-launch explosion, causing the company to lose a U.S.$95 million leasing deal with Facebook, as well as a planned U.S.$285 million acquisition by Shanghai-listed telecommunication technologies supplier Beijing Xinwei Technology Group Ltd. Spacecom was also forced to lease a replacement satellite from Hong Kong-based AsiaSat at U.S.$22 million a year.

Last week, Spacecom announced it has contracted with U.S. satellite manufacturer Space Systems Loral (SSL), a subsidiary of Maxar Technologies, to build AMOS-8, intended to replace AMOS-6. The company does not have the money to finance the U.S.$112 million deal and stated that it intends to raise at least U.S.$150 million from the public, from institutional investors, and from banks.

Check Also

Register Today For Our Space Café “33 minutes with Remco Timmermans” On 26 October 2021

This Space Café WebTalk will feature Remco Timmermans, Social Media Specialist for Space, in conversation with Torsten Kriening, publisher of SpaceWatch.Global. Live from the International Astronautical Congress 2021 in Dubai. Remco is an experienced space business professional, with 15+ years of experience in business analysis, process improvement, corporate