Hungary’s 4iG has finally received the go-ahead to buy a minority stake in Spacecom, the operator of the Amos satellite system.
This comes over 15 months after it was first reported that 4iG and two of its subsidiaries had entered into a preliminary agreement to acquire a majority (51%) stake in the Israeli company. Although the parties reached a final agreement last October, the $68 million transaction was held up following concerns raised by the Israeli security agency Shin Bet. As a result, the Israeli Ministry of Communications (MOC) refused to sign it off and 4iG and Spacecom decided to extend the deadline for meeting the conditions of the contract, albeit until February this year.
Six months later, we finally seem to have a deal, approved by the MOC and effectively in two stages. The first will see 4iG buy a 20% stake in Spacecom and the second, if it exercises its option, and with the necessary approvals, a further 31% in three years’ time.
Although no financial details of this new, two-stage deal have yet been announced, its significance is nevertheless far-reaching for both 4iG and Hungary as a whole. In 4iG’s case, it marks yet another important step in a rapid expansion that has already seen it acquire important assets in both its home market (Antenna Hungária and Digi, with Vodafone Hungary, jointly with the Hungarian state, soon to follow) and Albania (One Telecommunications and ALBtelecom).
For Hungary, it will eventually pave the way for the launch of its first commercial satellite within 4-5 years. It will be operated by CarpathiaSat, a joint venture between 4iG, Antenna Hungária and New Space Industries, and use an orbital slot currently occupied by Spacecom’s Amos-3.
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