Spacecom issued a formal notice to the Tel Aviv Stock Exchange that it was open to offers for a sale – or merger – of its satellite company. Spacecom operates the Amos fleet of satellites which operate mainly serving the Israeli market.
Spacecom has hired banker JPMorgan to advise on its next move. Spacecom is controlled by Shaul Elovitch through Eurocom Holdings Ltd. Elovitch also indirectly has significant holdings in Bezeq Israeli Telecommunications. However, the formal note to the stock exchange stated that the process is at an early stage “and there is no certainty that a deal will be carried out”.
Local reports suggest that a deal is possible in the $500 million-$600 million range, which would be around double Spacecom’s current market capitalisation.
The news surprised many industry watchers, especially given that in a recent interview Spacecom’s CEO David Pollack spoke enthusiastically of expanding his operation to a global service. “I am a firm believer in seeking prime orbital positions around the globe that fit our business strategy of working in high growth developing markets. We will always be on the lookout for other orbital positions and partnerships that strengthen our brand name and our capabilities around the globe.”
A new Amos craft (Amos-6) is scheduled for launch in 2015