The Spacecom Satellite Communications Ltd. (TASE:SCC) share price was almost unchanged today, after dropping 1.4% yesterday following its report about the projected acquisition of the company.
Spacecom's Amos-6 satellite was totally destroyed in an explosion of the launch rocket a week ago, after which the company lost a third of its market cap on Sunday, following a 9% drop on the preceding Thursday. Two weeks before that, Spacecom, controlled by Shaul Elovitch, signed a deal for its acquisition by Chinese communications corporation Beijing Xinwei Technology for $285 million (NIS 1.1 billion). Among other things, the deal included as a precondition the successful launch of the Amos-6, so the entire deal has been in limbo for a week, and the price set for it is certainly irrelevant. Spacecom's market cap today was NIS 550 million. The company also has six series of marketable bonds amounting to NIS 1.6 billion.
Yesterday, Spacecom, controlled by Shaul Elovitch, reported that it had reached the following understandings with Xinwei: Spacecom and Xinwei will cooperate for 30 days in considering a possible adjustment of the acquisition price in the agreement, plus additional adjustments, if necessary, to be discussed by the parties in the light of an assessment of the current circumstances following the loss of the Amos-6. Another agreement reached by the parties states that their commitment to the agreement and that of the shareholders is suspended until agreed otherwise (except for the commitment to refrain from negotiations with an alternative bidder for Spacecom, which in any case looks unlikely at the moment).
Published by Globes [online], Israel business news - www.globes-online.com - on September 8, 2016
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