Xinwei Buys Spacecom at Discount After Amos 6 Blowup

YERUSHALAYIM -

The Chinese communications corporation Xinwei was able to pick up Israel’s Spacecom for $190 million, marked down by 33 percent, thanks to the launchpad explosion of the Amos 6 satellite in Florida last summer, Globes said on Tuesday.

In August, Spacecom closed a $285-million sale deal with Xinwei, which was wrecked by the Amos 6 debacle a week later, sending share prices sliding more than 50 percent.

However, the new sale price is 50 percent higher than the company’s current market cap of $128 million.

The parties are to sign the agreement Thursday.

Meanwhile, on Monday, Spacecom reported its third consecutive weak quarter, showing a net loss of $34.3 million, compared with a net profit of $3 million in the corresponding quarter last year.

Spacecom’s revenue decreased 30.7 percent to $18.3 million in the third quarter, while operating losses were pegged at $29 million, compared with a $5.6-million operating profit in the corresponding quarter last year. In the first nine months of 2016, company revenue fell 35.3 percent to $52.1 million, while net losses were $34.8, compared with a $1.5-million profit in the corresponding period in 2015.