Xinwei officially cancels Spacecom acquisition

Shaul Elovitch Photo: Eli Yizhar

Spacecom says that are other companies interested in buying or merging with it.

The sales of Spacecom Satellite Communications Ltd. (TASE:SCC), a subsidiary of Eurocom Group (controlled by Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ) controlling shareholder Shaul Elovitch), has now been officially called off. The company today notified the Tel Aviv Stock Exchange (TASE) that the potential buyer, Chinese communications company Xinwei, had signed a document canceling the sale with a full mutual waiver of all claims. The acquisition was to have been for $285 million, but it was already clear months ago that the deal would not go through.

In its report, Spacecom also states that a number of business concerns have expressed interest in a merger or acquisition deal for the company, and that it is considering how to proceed in the matter.

The acquisition agreement was signed in August 2016. The Chinese company was to have paid a 30% premium on the market share price and a 44% premium on the average share price over the three months preceding the signing of the agreement.

Spacecom provides satellite communications services through the Amos satellites. According to Spacecom, Xinwei is the "a large Chinese communications group with international business, and provides solutions for telecom providers." The Chinese company has activity in cellular communications, equipment sales, technical cooperation, and communications satellites. Its representative in Israel is Major General (res.) Ami Shafran.

Published by Globes [online], Israel Business News - www.globes-online.com - on August 17, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

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Shaul Elovitch Photo: Eli Yizhar
Shaul Elovitch Photo: Eli Yizhar
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