Israel's Space Communication Said to Consider New Sale Attemptby and
New effort comes after a failed stake sale last year
The company's shares rose as much as 8.8 percent in Tel Aviv
Space Communication Ltd., the Israeli satellite operator, is exploring options including a sale of the company after a previous attempt to find a buyer fell through last year, according to people familiar with the matter. The shares surged as much as 12 percent before paring gains.
The company, also known as Spacecom, is working with a financial adviser to find a buyer, the people said, asking not to be named because the talks are private. The deliberations aren’t final and no agreement may be reached, the people said.
Shares of the company plunged after it lost contact with one of its four satellites last month. Spacecom has declared it a total loss and expects to receive compensation of as much as $158 million from the satellite’s insurer, according to a Dec. 15 filing with the Tel Aviv Stock Exchange.
A spokeswoman for Spacecom in Israel declined to comment.
Spacecom rose 5.1 percent to 32.82 shekels at the close of trading in Tel Aviv. The shares have declined 29 percent this year, bringing Spacecom’s market capitalization to 676.6 million shekels ($174 million).