TAMPA, Fla. — The U.K. plans to inject $191 million into Eutelsat’s capital raise this year to maintain its 10.89% stake in the French multi-orbit satellite operator.
The additional investment, announced July 10, would bring the total raised to around 1.5 billion euros ($1.76 billion) to help Eutelsat fund upgrades to its increasingly strategic OneWeb low Earth orbit (LEO) constellation.
France would still nearly double its stake in the operator if the capital increase wraps up as expected before the end of the year, rising from 13.59% to 29.65%, instead of 29.99% as initially envisioned.
Indian conglomerate Bharti, shipping giant CMA CGM and the FSP investment fund backed by seven France-based insurers would hold 17.88%, 7.46% and 4.99%, respectively. They were previously set to end up with 18.7%, 7.81% and 5.22%.
Bharti (which currently holds a 24.09% stake) and the British government gained equity in Eutelsat after rescuing U.K.-based OneWeb from bankruptcy before its 2023 merger with the French operator.
Satellites underpin industrial activity worth about 364 billion British pounds ($494 billion) to the U.K.’s economy, British Science Minister Peter Kyle said in a statement, 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,” Kyle said.
“This investment reflects our commitment to support the development of these critical technologies and maintain an important stake in the global satellite communications sector.”
The capital increase comprises two transactions, starting with an initial 823 million euros raised through a private placement at a 32% premium, offered only to the French and British governments, Bharti, CMA CGM and FSP.
These anchor shareholders would then take part in a subsequent 672 million euro rights issue open to all existing investors.