Israeli communications satellite operator Spacecom announced in a statement to the Tel Aviv Stock Exchange on Thursday that its purchase by Chinese Xinwei Telecom Technology Group had been canceled. Xinwei was expected to pay $285 million for Spacecom in a deal struck last year. The deal was signed in August 2016, shortly before the Amos 6 satellite communications exploded awaiting its launch in Florida in September 2016. The deal was conditional, however, on the satellite's successful launch. In addition to Amos 6, Spacecom lost its communications satellite Amos 5 due to a power generator failure in November 2015. Spacecom's letter to the TASE said that both sides decided to cancel the merger via "a mutual waiver of all claims." The company also wrote that they are contemplating further actions in this matter. Despite the nixed deal, the company reported to investors that there are other parties interested in acquiring it. Investors seemed unfazed by the news that Xinwei had nixed the deal, sending Spacecom shares up 3.5% by the end of Thursday's trading.
Chinese telecom group pull out of $285M deal to buy Israeli satellite company
Xinwei telecom group had agreed to purchase Israel's Spacecom just before Israeli satellite exploded in launch failure last year • Deal canceled via "a mutual waiver of all claims" • Satellite operator's investors unfazed, send Spacecom shares up 3.5%.
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