Spacecom Satellite Communications Ltd. (TASE:SCC) will buy the Amos 5 communications satellite from Russia's JSC Academician MF Reshetnev Information Satellite Systems for $157 million. Spacecom will make a $30 million down payment on August 31.
Spacecom added that while the satellite is under construction, it would raise the capital for the purchase from various entities and by various means. The Amos 5 is scheduled for delivery and launch by March 31, 2011, and is due to operate for 15 years, at least 14 of which will be insured.
Amos 5 will enable Spacecom to provide satellite communications services for its customers. The company already provides these services with the Amos 2 and Amos 3 satellites, as well as through the Amos 4 after it is launched.
Spacecom can cancel the agreement to buy the Amos 5 up to the launch if the satellite cannot be delivered, if it is found to be flawed during ground tests, or if it is lost after launch. Academician MF can cancel the halt manufacture of the Amos 5 if Spacecom is in arrears in payment.
Published by Globes [online], Israel business news - www.globes-online.com - on July 31, 2008
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