Bharti Space to invest $36 million in French satellite major Eutelsat

Eutelsat to raise €1.35 billion via capital increase and rights issue to expand LEO satellite capacity and repay debt; Bharti Space to invest €31.4 million

As part of a plan to refinance debt and expand its upcoming constellation of satellites, French satellite major Eutelsat Communications will raise €1.35 billion or $1.55 billion through a reserved capital increase, which will be subscribed by the French government, and a rights issue, the company announced on Friday. Bharti Enterprises’ space venture Bharti Space Ltd will invest €31.4 million (₹313 crore) or $36 million in the capital raise. 

In 2023, Bharti Enterprises-backed satellite communications company Oneweb had merged with Eutelsat to become the second-largest satellite operator globally with 669 satellites in orbit.   

The reserved capital increase, valued at €716 million, will see new shares issued at €4 each — at a 32 per cent premium over the recent 30-day volume-weighted average price — Eutelsat, which is a key rival of Elon Musk's Starlink, said. The Agence des Participations de l'Etat (APE), or State Participations Agency, responsible for managing the French state's shareholdings in companies of strategic importance, would subscribe €526.4 million of this. Shipping giant CMA CGM, and Le Fonds Stratégique de Participations (FSP), an investment fund owned by seven France-based insurance firms, will also put in €100.4 million and €57.8 million, respectively. A separate rights issue of €634 million would also be subscribed by these investors. 

Apart from pushing forward a dedicated debt refinancing plan, this capital increase will reinforce the company’s financial flexibility by accelerating its deleveraging and supporting investment in its existing Low Earth Orbit (LEO) capabilities and the future IRIS² constellation.   

"By strengthening the capital of Eutelsat, the only European player in low-orbit constellations, France is ensuring its strategic independence and preparing that of Europe,” French President Emmanuel Macron tweeted on Friday. Positioned as the only European operator with a fully operational geostationary orbit (GEO)-LEO network, Eutelsat plays a pivotal role in military and secure communications. A 10-year, €1 billion contract with France’s Ministry of Armed Forces further cements its role in the nation’s defence and space communication strategy. 

The global satellite connectivity market is expected to increase by 12 per cent per annum between 2025 and 2029. The global LEO B2B connectivity market is, meanwhile, valued at over $2.1 billion, and is expected to grow at a 28 per cent compound annual growth rate (CAGR) through 2029, and multiply its current size fivefold over the next eight years, offering significant short- to long-term growth potential. 

“I am delighted that under the leadership of President Macron, the French state has decided to back Eutelsat as the European Space Champion and increased its shareholding by injecting a sizable investment into the company. We are also thrilled to welcome the French armed forces ministry DGA's partnership with Eutelsat in a long-term €1B contract to reserve capacity on Eutelsat’s LEO OneWeb constellation for its mission-critical needs," said Sunil Bharti Mittal, founder & chairman, Bharti Enterprises, and co-chairman of the Eutelsat group. 

Eutelsat forecasts revenue growth to reach between €1.5 billion and €1.7 billion by 2028-29 (FY29).