4iG Cleared to Raise Stake in Spacecom
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Listed Hungarian IT company 4iG on Thursday said it was cleared by Israel's Ministry of Communications to raise its stake in Israeli satellite company Space Communications from 9.538% to 20% with a capital raise, according to a report by state news wire MTI.
Under an agreement 4iG signed last September, 4iG may gradually acquire a 51% stake in Spacecom over a period of several years. The deal outlines 4iG's acquisition of a 20% stake in Spacecom in public offerings or private placements as a "first step". Three years after the acquisition of the 20% stake, 4iG may boost its holding in Spacecom by an additional 31%, pending approval by shareholders and clearance from the Ministry of Communications.
4iG acquired its 9.538% stake in Spacecom in October.
Spacecom operates the Amos fleet of four geosynchronous satellites, offering broadcast and broadband service. Spacecom's Amos 3 satellite leases the geostationary orbit held by Hungary under an agreement that will expire in 2024. CarpathiaSat, a 4iG group member, holds the rights to the orbit for a 20-year period from 2024.
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