UK govt to invest EUR163 million in Bharti Group-backed Eutelsat
Eutelsat
, which will increase the French satellite-communication major's capital raising plan to EUR1.50 billion from EUR1.35 billion earlier, further diversifying state ownership of the satellite group.
The investments will be in two stages – first a preferential issue and then a rights issue – in Eutelsat, the world's second largest satcom group and a chief rival to Elon Musk-owned
Starlink
. The UK government will invest EUR90.1 million via the preferential issues and EUR73.2 million via the rights issue, giving it a 10.89% stake in Eutelsat.
In fact, French President Emmanuel Macron had recently invited India to also invest in Eutelsat, to help broad-base state ownership of the company amidst global geopolitical challenges.
The French government will invest €550.7 million in Eutelsat in the first preferential issue round, and then EUR199.3 million and become the largest shareholder with a 29.65% stake, displacing Bharti Space, which will now own 17.8% stake in Eutelsat.
Bharti Enterprise's space venture will invest €29.9 million as part of the preferential issue and EUR120.1 million in the rights issue, totalling a commitment of EUR150 million.
Other investors include shipping major CMA CGM with €99.8 million and EUR50.2 million for a 7.46% stake, with sovereign investor FSP putting in €57.4 million and EUR33.5 million, which will give it 4.99%.
The Reserved Capital Increase (RCI), or the preferential issue, and the Rights Issue are expected to be completed by the end of calendar 2025, the company said in a release Thursday.
'I am delighted that the UK has joined Bharti and the French State in announcing further investment in Eutelsat Group, and I thank Prime Minister Starmer for his vision and leadership on this matter.,' Sunil Bharti Mittal, Founder & Chairman, Bharti Enterprises & Co-Chairman Eutelsat Group.
After the merger between Eutelsat and Bharti Enterprises- and UK government-backed OneWeb in 2023, the Indian group became the largest shareholder in Eutelsat with a 21.2% share.
'Today, governments require secure and reliable sovereign connectivity solutions, and Eutelsat is uniquely positioned to meet this need. Eutelsat's OneWeb was the first complete low-Earth orbit constellation, and the company is the first and only provider able to provide customers with access to both low-Earth orbit and geostationary orbit services,' CEO, Jean-François Fallacher said. "I echo (French) President (Emmanuel) Macron's words at the Paris Air Show last month, where he urged France's major strategic partners in the Gulf, India, Canada and Brazil to join the coalition backing Eutelsat Group as the global Space Champion.'
The capital raise comes at a time of heightened activity in the satellite internet space, especially in India. Eutelsat OneWeb, a unit of the Eutelsat group, is poised to start commercial broadband-from-space service in India, having received all necessary statutory clearances, except for spectrum.
Operating more than 600 satellites since merging with British firm OneWeb in 2023, Eutelsat is the world's second-largest operator of low Earth orbit (LEO) satellites. But it remains far smaller than Starlink, which has 6,000 satellites.
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