Spacecom Satellite Communications Ltd. (TASE:SCC) has raised NIS 75 million through a private placement of shares to private and institutional investors.
Investors were IBI Investment House Ltd. (TASE:IBI), Harel Insurance Investments and Financial Services Ltd. (TASE: HARL), Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS), Menorah Mivtachim Holdings Ltd. (TASE: MORA), Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL), Hadas Arazim Investment House Ltd.'s Hadas Mercantile Provident Funds, Ion Israel Fund Ltd., and Sphera Master Fund LP. Poalim IBI Underwriting and Investments Ltd. (TASE:PIU) was the lead underwriter.
Spacecom allotted shares amounting to 8.3% of its share capital at NIS 56.10 per share, a 4.8% discount on the price as of allotment date, and a 13% discount on today's opening price. Spacecom's share rose 0.7% today to NIS 65, giving a market cap of NIS 1.05 billion.
Spacecom did not cite specific purposes for the proceeds of the placement, but part of them will reportedly finance the purchase of the Amos 5i communications satellite.
In late October 2009, Spacecom reached a deal with Migdal and Amitim (the eight nationalized old pension funds) for $140 million to finance the building and launch of the Amos 5 communications satellite. The satellite is scheduled for launch in 2011 and to operate for 15 years on an orbit that will provide coverage of Africa and parts of Europe and the Middle East. Until the Amos 5 is ready, Spacecom will provide services via the 5i satellite, whose services it purchased for $45 million in September 2009.
Before the allotment, Shaul Elovitch owned 57% of Spacecom Satellite Communications Ltd. (TASE:SCC) through Eurocom Group, and Israel Aerospace Industries Ltd. (IAI) (TASE: ARSP.B1) owned 16.8%.
Published by Globes [online], Israel business news - www.globes-online.com - on January 10, 2010
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