Israeli satellite operator Spacecom said on Tuesday it had signed a preliminary deal to sell 51% of the company to Budapest-based 4iG for 215 million shekels ($66 million).

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The companies signed a non-binding letter of intent with a period of exclusivity ending August 15. Any deal will need regulatory approval, including from Israel's Communications Ministry.

Spacecom operates the AMOS satellite fleet made up of four communication satellites that serve Europe, Africa, the Middle East and Asia.

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Amos-17, which will provide communication services to Africa, had a total budget including manufacturing, insurance and launch of about $250 million, and will join three others Spacecom operates.

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It was manufactured by Boeing Co and has an expected lifespan of about 20 years.

Spacecom hopes a successful launch from Cape Canaveral, Florida, on Aug. 3 will end a rough patch. In 2015, the company lost contact with its Amos-5 satellite and a year later Amos-6 was destroyed days before its scheduled launch when a SpaceX rocket exploded.

"We learned lessons from those catastrophes," CEO David Pollack told Reuters following a news conference on Sunday. For example, he said Amos-17 would not be combined with the launcher before the latter is fully tested.

"What happened with Amos-5 and Amos-6 was a setback for the company. So we know what to do. We believe we know how to grow. And it's just a wonderful opportunity that comes with Amos-17, which is the most advanced satellite for the continent most in need," Pollack said.

Amos-17 is scheduled to launch on a SpaceX Falcon 9 rocket and will orbit 36,000 kilometers (22,370 miles) above central Africa, providing TV, internet and cellular services as well as services to governments.

The company said it has a sales backlog of $58 million for communication services to Africa and for other services.

Pollack said he expects to recoup Amos-17's costs in line with industry standards, which is about six to seven years.

Spacecom shares remain well below their peak of 78.30 shekels ($22.21) set in June 2010 but have rallied in recent weeks and closed at 11.60 shekels ($3.29) on Friday.

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