A Luxembourg-based offshoot of Beijing-based Xinwei Group has bought Spacecom of Israel (Space Communications), operators of the AMOS fleet of satellites for $285 million (€252.7m), an impressive premium of 41 percent on the stock market valuation.

In a somewhat complicated three-way transaction Spacecom will ‘merge’ with Luxembourg Space Telecommunications (itself a subsidiary of Beijing Xinwei Technology Group). Luxembourg Space Telecommunication shall acquire, by way of triangle reverse merger, the full share capital of the company.

The transaction shall be performed through the Israeli company Big Bird Ltd. – fully owned by the Xinwei group – headed by Ami Shafran. Upon the completion of the merger, the company shall become a private company fully owned by Beijing Xinwei technology group. The debentures issued by the company shall continue to be traded at the stock exchange, therefore the company shall continue to be regarded as a reporting entity.

A company statement said: “The completion of the merger is subject to conditions precedents set forth in the merger agreement, including, inter alia: the approval of the Merger by the Company’s shareholders general meeting; the receipt of all the required regulatory approvals; the avoidance of specific unfavourable material changes in the business of the company; the launch of the satellite Amos 6 and the completion of its in-orbit tests.”