UK to invest 163 million euros in Eutelsat, Bharti Space ups stake

The UK government will invest 163 million Euros in Eutelsat, boosting the satellite operator's capital raise to 1.5 billion Euros

The United Kingdom will invest 163 million Euros in French satellite major Eutelsat through a reserved capital increase (RCI), bringing the total amount planned to be raised by Eutelsat to 1.5 billion Euros, the company announced on Thursday. Bharti Space Ltd has also raised its investment commitment to 150 million Euros.

 

The British government will invest 90.1 million Euros through an RCI and a rights issue (RI) of 73.2 million Euros, through the office of the Secretary of State for Science, Innovation, and Technology of the United Kingdom. “As our adversaries increasingly use space technologies to harm us, resilient satellite connectivity has become essential to our continent’s national security. This investment reflects our commitment to support the development of these critical technologies and maintain an important stake in the global satellite communications sector,” said Peter Kyle, Secretary of State for Science, Innovation, and Technology.

   

The entry of another key reference shareholder comes weeks after the French government had announced a similar investment of 551 million Euros in the RCI and subscribed to a rights issue of 199.3 million Euros. The Agence des Participations de l'État (APE), or State Participations Agency, responsible for managing the French state's shareholdings in companies of strategic importance, will now have a total investment of 750 million Euros.

 

In 2023, Bharti Enterprises-backed satellite communications company OneWeb merged with Eutelsat to become the second-largest satellite operator globally, with 669 satellites in orbit. The total RCI would amount to 828 million Euros, and a subsequent RI would amount to 672 million Euros. 

 

Eutelsat's capital raise is part of a plan to refinance debt and expand its upcoming constellation of satellites. Apart from moving forward with 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.

 

“Today, governments require secure and reliable sovereign connectivity solutions, and Eutelsat is uniquely positioned to meet this need. I echo President 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,” said Sunil Bharti Mittal, Co-Chairman of Eutelsat Group.

 

Both the RCI and the RI are expected to be completed by the end of 2025. Following the two transactions, and subject to participation from investors, the French State would hold a stake of 29.65 per cent of the capital and voting rights, while Bharti Space Limited and the UK government would hold 17.88 per cent and 10.89 per cent, respectively. Shipping giant CMA CGM, and Le Fonds Stratégique de Participations (FSP), an investment fund owned by seven France-based insurance firms, would hold 7.46 per cent and 4.99 per cent of the share capital and voting rights. The rules of the agreement state that investors will not be in a position to launch a public takeover.