Merrill Lynch & Co. (NYSE:MER) is heading a group of US investors that has invested $60 million in ImageSat International NV, which operates the Earth Remote Observation Satellite (EROS) A and B satellites. Mizrahi Tefahot Bank (TASE:MZTF) has also invested tens of millions of shekels in the company.
The deal is expected to be closed in a few days. Israel Aircraft Industries Ltd. (IAI) controls ImageSat with a 44% stake, fully diluted, and Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) owns 11%. ImageSat recently raised $34 million in a bond placement for investment institutions.
Launched in December 2000, EROS A is a commercial high-resolution imaging satellite. ImageSat is now planning the launch of the $100 million EROS B.
The bond placement was intended to finance the EROS B launch. IAI invested $50 million in the EROS B launch, and the rest of the sum has now been obtained. The matter of insurance is now being finalized. Lloyds of London is heading an insurance syndicate, which will cost $3-4 million.
Published by Globes [online], Israel business news - www.globes.co.il - on April 3, 2006
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