4iG moves forward with Spacecom acquisition plan

Hungarian telecoms and ICT outfit 4iG has struck a new agreement on the conditions for its planned acquisition of a majority stake in Israeli satellite operator Spacecom which operates the Amos satellite constellation.

Via Spacecom’s public and private share issue, the Hungarian company group can now acquire a 20% stake in the Israeli company. Over the next three years, this can be increased by a further 31%, subject to approval by the Israeli Government and shareholders.

Spacecom, which listed on the Tel Aviv Stock Exchange, offers broadcast and broadband satellite services to customers worldwide. It provides coverage over Hungary and the neighbouring region wth the Amos 3 satellite, using the Hungarian geostationary orbit until 2024.

After this date, Hungary has the opportunity to gain control over its own orbit and frequency again. A national satellite company, CarpathiaSat cPlc., was established within 4iG Group to take over the slot and launch and operate the first Hungarian telecommunications satellite in geostationary orbit.

CarpathiaSat will hold the right to operate Hungary’s orbital slot for 20 years from 2024. The acqusition of Spacecom will provides technological and business support for developing the Hungarian commercial satellite to replace Amos 3, according to 4iG.

In addition to Spacecom, 4iG has been at the centre of the Hungarian government’s project to create a ‘national champion’ in telecoms.

The group recently struck a deal to take over a majority stake in Vodafone Hungary – with the Hungarian state owning 49% – having previously acquired the Hungarian operation of Romanian and interntional telecom and cable group Digi. It also recently upped its stake in transmission services and digital-terrestrial TV outfit Antenna Hungária, with the state taking a minority stake.

“We are proud that after one and a half years of preparation, the Israeli Government agreed to acquire the minority ownership of Spacecom, which owns and operates critical infrastructure. By this agreement, 4iG can be the very first Hungarian enterprise that bears capabilities from landline to space communication assets, with full-scale and interoperable services in the fields of digitalization and telecommunications,” said Gellért Jászai, chairman of 4iG Group.

“Spacecom’s know-how and experience greatly support the launch of the first Hungarian commercial satellite, which may take place within 4-5 years, thanks to the technology and knowledge transfers created in connection with this cooperation.”