JERUSALEM : Israeli satellite operator Spacecom said on Tuesday that Budapest-based 4iG agreed to buy a 51per cent stake in the company for US$68 million through a private shares placement.

The deal values Spacecom at above US$124 Million and represents a 50per cent premium over the average US$2.6 price per share from the last six months trading average on the Tel Aviv Stock Exchange, it said.

The companies had announced a preliminary agreement in June.

Spacecom operates the AMOS satellite fleet made up of four communication satellites that serve Europe, Africa, the Middle East and Asia.

“4iG’s investment will significantly improve Spacecom’s financials and our ability to drive and fulfill business and global strategic plans,” said Spacecom CEO Dan Zajicek.

In its statement, Spacecom said the deal potentially strengthens its operations in Eastern and Central Europe.

The deal still needs approval from Spacecom’s shareholders and Israel’s Communications Ministry.

(Reporting by Ari Rabinovitch; Editing by Steven Scheer)

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