Spacecom Shares Surge 10% as Director Jon Rosenberg Bids for Eurocom Stake
Spacecom director Jon Rosenberg bids to buy Eurocom's 31.4% stake, valuing the company at 140 million NIS, as receiver Hagai Ullman prepares a competitive public tender.
The sale of Eurocom's holdings in Spacecom (Space-Communication Ltd.) is reviving, with a first official bid submitted to the receiver, Hagai Ullman, who is preparing to launch a competitive tender process.
Jon Rosenberg, a director at Spacecom, has submitted an offer to Hagai Ullman, the receiver for Eurocom Real Estate, to purchase Eurocom's entire stake in the company, which represents 31.4% of its share capital. Following the announcement, Spacecom's share price surged by over 10% on the Tel Aviv Stock Exchange, bringing the company's market value to 128 million NIS.
Rosenberg's offer reflects an implied valuation of 140 million NIS for Spacecom. Alternatively, the purchase price would be set at a 20% premium over the highest trading price of the company's stock during the next week and a half, up to September 16.
Connection to Hungary's 4iG and Aaron Frenkel
Rosenberg is not a well-known figure in the capital market, but he serves as a representative of the Hungarian group 4iG. The Hungarian conglomerate has previously made several unsuccessful attempts to acquire Spacecom from its bondholders. Rosenberg, however, claimed that his current bid is entirely independent and has no connection to the Hungarian group.
Currently, 4iG already holds a 20% stake in Spacecom, having previously failed to obtain the necessary regulatory control permit for a full takeover. In the past, the Hungarian group collaborated with Israeli businessman Aaron Frenkel in an attempt to gain control of Spacecom, a move that was never completed. Capital market estimates suggest that Frenkel has not yet abandoned his ambition to acquire control of the satellite communications company.
In October last year, Spacecom completed a debt restructuring agreement with its bondholders. Under the terms of the arrangement, the company repaid $390 million in debt while simultaneously issuing new bond series totaling $140 million.
Receiver Hagai Ullman does not intend to accept Rosenberg's direct offer immediately. Instead, he plans to initiate a competitive public tender to sell the Eurocom shares, a move that indicates there may be other interested parties looking to acquire control of Spacecom.
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