Hungary’s 4iG to buy controlling stake in Israeli satellite firm Spacecom

Israeli satellite operator Spacecom (SCC.TA) said on Tuesday that Budapest-based 4iG (IGNY.BU) agreed to buy a 51% stake in the company for $68 million through a private shares placement.

The deal values Spacecom at above $124 Million and represents a 50% premium over the average $2.6 price per share from the last six months trading average on the Tel Aviv Stock Exchange, it said.

The companies had announced a preliminary agreement in June. read more

Spacecom operates the AMOS satellite fleet made up of four communication satellites that serve Europe, Africa, the Middle East and Asia.

“4iG’s investment will significantly improve Spacecom’s financials and our ability to drive and fulfill business and global strategic plans,” said Spacecom CEO Dan Zajicek.

In its statement, Spacecom said the deal potentially strengthens its operations in Eastern and Central Europe.

The deal still needs approval from Spacecom’s shareholders and Israel’s Communications Ministry. Reuters