Hungarian telecoms operator group 4iG has agreed conditions to acquire a minority stake in Israeli company Spacecom, as part of a move for the company to launch Hungary’s first commercial satellite to expand coverage and services.
In a statement, 4iG detailed that it is initially acquiring 20% shares in Spacecom after gaining approval from the Israeli Ministry of Communications. The operator has the option after three years to increase its stake by an additional 31%. The acquisition was valued at US$68 million when revealed in October 2021.
Gellert Jaszai, 4iG Group chairman said: “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 digitalisation and telecommunications.”
Jaszai added the 4iG plan to launch the first Hungarian commercial satellite within four to five years once the deal is finalised.
Spacecom is listed on the Tel Aviv stock exchange and sells broadcast and broadband satellite connectivity to customers globally.
The company sells its services in Hungary through the AMOS 3 satellite using the Hungarian geostationary orbit until 2024. From 2024, Hungary will be able to gain control over its orbit and frequency, noted 4iG.
The company will use its JV firm CarpathiaSat to launch its satellite into geostationary orbit. CarpathiaSat holds the rights to operate in Hungary’s orbit for 20 years from 2024, replacing the AMOS 3 satellite.