Satellites (pixabay photo)
Beneath the surface, an interesting control struggle is stirring over a communications space, one of the battered companies on the stock market, but one of the most interesting there is. The businessman Aaron Frankel and the Hungarian investment company 4iG are fighting (quietly and under the surface) for the control of the company. While one side is the Hungarian company that still needs to get the required permits the other side is Aaron Frankel who seems to be enjoying these struggles (and is profiting quite a bit from them).
If so, Space Communications completed (over the weekend) a fundraising of approximately 33 million shekels, when last Monday the company announced the receipt of early commitments to purchase shares for 26.6 million shekels from classified investors, who pledged to purchase in advance 76.88% of the total consideration.
More in-
In the public phase, the company received and responded to requests of approximately NIS 6.2 million. The total consideration for the company for the issuance of the shares is approximately NIS 32.8 million at a price of NIS 4.3 per share. The 4iG company participated in the offering and invested NIS 13 million for 9.5% of the company’s shares.
Let’s recall that Halal-Communications entered into an agreement with the Hungarian telecommunications company 4iG, according to which the buyer will be allocated, in the first stage, 20% of the shares of Halal-Communications. Accordingly, the 4iG company is expected to complete an additional investment beyond its current holding in the amount of 19.5 million shekels at a price of 4.7 shekels per ordinary share to complete its holding and this is subject to the approval of the Ministry of Communications which is expected to be received in the coming month and in which the first phase will be completed.
In the second phase, subject to the existence of additional conditions precedent, 4iG will be able to purchase for a period of three years from the date of completion of the transaction, from time to time and subject to receiving additional approval from the Ministry of Communications, additional ordinary shares of the company, until it reaches a cumulative holding of 51% of the issued and paid-up share capital and voting rights in the space -communication. The price for the additional 31% of the share capital will be NIS 8.5 per ordinary share, which amounts to an additional investment of approximately NIS 170 million.
Last month, Chalal-Communications reported that the receiver of the assets of Eurocom Communications entered into an option agreement with Aharon Frankel regarding the purchase of 26% of the company’s issued and paid-up share capital, at a price of NIS 4.58 per share.
Halal Communications is, as mentioned, one of the interesting companies in the stock market. It is the only civilian satellite company in Israel that possesses interesting capabilities. The company has suffered in recent years from the loss of a satellite and the crash of a satellite during a launch it made using Elon Musk’s spaceX, but since then it is in an impressive process of recovery.
Khalal also suffers from two other problems, the fact that the controlling owner of the Eurocom company went into receivership and the loss of an essential customer such as Yes, which is supposed to switch to broadcasting its television services via the Internet instead of via satellite.
One way or another, civil satellite services have quite a few demands around the world, demands that are fueled by the conclusions reached after the Corona crisis and the need to connect remote areas to fast and high-quality communication services when there is no real ability to deploy terrestrial infrastructure at a reasonable cost.
In the second quarter of this year, the company reported an increase of approximately 90% in revenues from the Amos-17 satellite compared to the corresponding quarter last year, to an annual rate of approximately $27 million, out of total revenues at an annual rate of approximately $100 million, as well as an increase of approximately 70% in gross profit compared to the corresponding quarter last year. The cash flow from current operations, which showed a gap in the first half, was approximately $36 million and the company’s order backlog at the end of the second quarter totaled approximately $263 million.
Halal-Communications is Israel’s private satellite company. The company is a satellite communications provider and the owner of the Amos satellite fleet, which includes the advanced broadband digital satellite (HTS) Amos-17, which expands the company’s deployment network to Africa, the Middle East and Asia.
Halal-Communications, which began its operations in 1992, established over the years its position as a provider of a wide range of satellite communication services. The company provides wide satellite coverage over Africa, Asia, Europe and the Middle East. Using the Amos-4, Amos-7, and Amos-17 satellites, together with an array of ground stations (Teleports).
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