Spacecom Satellite Communications' (TASE:SCC) board of director has authorized management to sign a contract with Israel Aerospace Industries Ltd. (IAI) (TASE: ARSP.B1) to build and buy the Amos 6 communications satellite for $200 million. IAI will build the satellite and its ground control systems, and will provide operating services. The company plans to launch the Amo6 in the first quarter of 2015, and its operating life will be at least 16 years.
Spacecom estimates that the cost of launching, insuring and one year's operation of the Amos 6 will be $85 million. The company has to pick a launch company. Spacecom said that it will seek financing for the Amos 6 from IAI and foreign sources.
Spacecom added that it plans to sign $95 million in services contracts even before the Amos 6's launch, of which $20 million will be paid during the satellite's construction and the rest during its operational period.
The Amos 6 will replace the Amos 2, whose service period will end in 2016. Spacecom said that the Amos 6 would broaden the range and scope of satellite communications services for the company's clients in the Middle East and Europe.
Spacecom is a subsidiary of Shaul Elovich's Eurocom Group, the controlling shareholder in Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ)> Spacecom's share price was unchanged today at NIS 58.87, giving a market cap of NIS 1.2 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on June 24, 2012
© Copyright of Globes Publisher Itonut (1983) Ltd. 2012
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