Hungarian IT and ICT company 4iG PLC has announced its first international transaction, which it says will allow the Group to continue building its telecommunications portfolio and expanding its space industry business.
4iG and its two subsidiaries, Hungaro DigiTel and CarpathiaSat, have entered into a preliminary agreement with Space-Communication Ltd. (Spacecom) to acquire a 51 per cent stake in satellite operator Spacecom, which is listed on the Tel Aviv Stock Exchange. Spacecom offers global coverage through its four geosynchronous satellites, providing services in Hungary and the region via its AMOS 3 satellite.
A non-binding agreement on the details of the transaction, company, to be effected through a private placement, was announced by the parties on the Budapest and Tel Aviv stock exchanges.
Following due diligence of Spacecom, the successful completion of the transaction is conditional upon the approval of the acquisition by Spacecom’s General Assembly and the Israeli Ministry of Communications. The transaction is estimated to be worth $65 million (€53.5m).
“Following a preliminary agreement with Spacecom, I am confident that we will be able to complete the transaction this autumn, which would also mean that the 4iG Group has successfully completed its first international acquisition,” said Gellért Jászai, 4iG CEO. “I consider this transaction as a milestone not only in the growth of our group, but also in the preparation of an agreement that could open new doors for Hungary in the space industry and space telecommunications. Spacecom’s decades of technological experience, innovative solutions, global market knowledge and professional staff can provide CarpathiaSat with a high level of support for the development and launch of the first Hungarian commercial satellite. Thus, the acquisition is an important step for us in terms of knowledge transfer and the development of international strategic partnerships,” he asserted.
Under the preliminary agreement, 4iG and its subsidiaries would acquire an absolute controlling majority stake in the Israeli company through a private placement. In order to complete the acquisition, 4iG will start due diligence on the target company, the results of which are expected by August and will allow it to make a final offer for a 51 per cent stake in Spacecom.