Eutelsat has confirmed the UK will alongside its other key investors participate in its planned capital increased.
The move was originally signalled Thursday by French President Emmanuel Macron during a state visit to the UK. The Paris-based satellite operator is looking to provide a European alternative to Elon Musk and his Starlink Low Earth Orbit service.
His Majesty’s Government, the French State via APE, Bharti Space Limited, CMA CGM, and FSP have committed to subscribing to the Reserved Capital Increase and the Rights Issue, totalling an investment of €163.3 million. These commitments depend on shareholder and regulatory approvals and the execution of an amended shareholders’ agreement.
The Reserved Capital Increase will amount to €828 million, with specific contributions from the French State (€551 million), Bharti Space Limited (€30 million), the UK Government (€90 million), CMA CGM (€100 million), and FSP (€57 million). The subsequent Rights Issue is set at €672 million, with both transactions expected to complete by the end of 2025.
“We are delighted by this support from His Majesty’s Government, which has been one of the mainstays of OneWeb, and subsequently Eutelsat’s anchor shareholders from the outset of our Low Earth Orbit journey,” said Jean-François Fallacher, Chief Executive Office of Eutelsat. “We remain committed to the UK which we consider as one of our home markets and to supporting the development of OneWeb to address the needs of all our sovereign and commercial stakeholders.”
Peter Kyle, Secretary of State for Science, Innovation and Technology added that the UK government was committed to supporting critical technologies. ““From checking the weather forecast on our phones to navigating with GPS in our cars, satellites underpin industrial activity worth £364 billion to the UK economy. But their critical role extends far beyond economic growth. As our adversaries increasingly use space technologies to harm us, resilient satellite connectivity has become essential to our continent’s national security.”
After the transactions, the French State will hold 29.65% of Eutelsat’s capital and voting rights, with other investors holding significant shares but without the ability to launch a public takeover. The investment underscores the importance of satellite technology for economic growth and national security, highlighting continued UK support for the sector.
