JERUSALEM/HONG KONG Nov 30 Beijing Xinwei
Technology Group remains in negotiations to buy
Israeli satellite operator Space Communications, but
the purchase price has been reduced by a third to about $190
million, the companies said on Wednesday.
The price could still be adjusted further, they said in
separate statements to the Shanghai and Tel Aviv stock
Beijing Xinwei said there are disagreements among the
parties and that reaching a deal remained uncertain.
In late August, Beijing Xinwei had agreed to buy Spacecom
for $285 million, but the deal was put on hold after a Spacecom
communications satellite was destroyed in early September.
Still, the companies said they would continue to reach a deal.
Last week, an amended takeover deal deadline was extended to
Once completed, Spacecom would become a private company,
though its bonds will continue to be traded on the Tel Aviv
Initially, reaching a deal was contingent on the successful
launch of Spacecom's Amos-6 satellite on Sept. 3.
But two days before the scheduled launch an explosion
destroyed a Falcon 9 rocket belonging to Elon Musk's SpaceX
during preparations for a routine test firing at Cape Canaveral
Since the incident, Spacecom's shares have fallen some 56
percent, while its market value is down to 568 million shekels
Spacecom's shares were 0.5 percent lower in afternoon
trading in Tel Aviv at 27.50 shekels. Xinwei's shares rose 0.2
Israel's Eurocom Holdings owns 64 percent of Spacecom.
($1 = 3.8368 shekels)
(Reporting by Steven Scheer in Jerusalem, Meg Shen in Hong
Kong, editing by Louise Heavens)