4iG to acquire majority stake in Israel's Spacecom as part of global strategy
Hungaro DigiTel Kft. (HDT), a joint subsidiary of 4iG PLC (75 percent) and Antenna Hungária Zrt. (25 percent), has entered into a final agreement with Space-Communication Ltd. (Spacecom) to acquire a 51 percent stake in the company. Spacecom, listed on the Tel Aviv Stock Exchange, is a satellite operator and service provider with a global coverage, consisting of four geosynchronous satellites, which provides its services in Hungary and the Central and Eastern European region via the AMOS 3 satellite. The successful completion of the transaction is subject to the approval of the acquisition by the General Assembly of Spacecom as well as the Israeli Ministry of Communications.
Following the due diligence, Hungaro DigiTel Kft., a joint subsidiary of 4iG PLC and Antenna Hungária Zrt., has entered into a final agreement with Space-Communications Ltd. in order to acquire a 51 percent stake in the company listed on the Tel Aviv Stock Exchange in the form of private capital increase. The details of the transaction were also announced by the parties on both the Budapest and the Tel Aviv Stock Exchanges. Following the announcement, Spacecom’s management will convene the Company’s shareholder to decide on the capital increase at the Company’s expected General Assembly at the end of November, and thus 4iG’s indirect acquisition of the Company. In addition to the approval of Spacecom’s shareholders, the transaction is also subject to the approval of the Israeli Ministry of Communications.
“We look forward to working with Spacecom’s management, which will open up new business opportunities for both companies in the telecommunications and space industries,” said Gellért Jászai, President and CEO of 4iG, after signing the contract. “I am confident that the shareholders of Spacecom will also welcome us at the extraordinary general meeting of the Company. We want to be present in the company as a long-term professional investor, and we have a strong growth strategy in the field of telecommunications and space telecommunications. We will also dedicate an important role to Spacecom in the development and operation of the first Hungarian commercial satellite, to be launched by our subsidiary CarpathiaSat, in which we count on the company's decades of experience, as well as the expertise of the employees working there,” emphasized the President-CEO.
Under the agreement, 4iG would indirectly acquire a 51 percent absolute controlling majority in the Israeli company through a private equity increase. Following the completion of the acquisition, Spacecom will strengthen 4iG’s space competencies, creating significant synergies with the IT and telecommunications sectors.