On the heels of the UK’s confirmation that it is topping up its capital investment in Eutelsat’s OneWeb (by €163.3 million), Eutelsat’s Indian partner Bharti Space is making a similar top-up worth €120 million. The smaller amount reflects a €30 million capital injection made in June by Bharti.

Following the fresh investment, Bharti Space’s stake in Eutelsat will decline to 17.88 per cent from the current 24.09 per cent. The French government, which is injecting €750 million into the round, €550.7 million via a preferential allotment and €199.3 million through the rights issue, will emerge as the company’s largest shareholder, holding 29.65 per cent.

The 29.65 per cent is not accidental. Were it to be 30 per cent then it would have to make a formal buy-out offering to all shareholders.

As reported last week following on from French president Macron’s meetings in the UK, the UK government is also joining the capital raise, committing €163 million, split between €90.1 million via the reserved issue and €73.2 million through the rights offering, securing a 10.89 per cent stake. Other key investors include French shipping conglomerate CMA CGM, which will hold 7.46 per cent, and sovereign investor FSP, which will own 4.99 per cent following its investment.

Peter Kyle, the UK’s Secretary of State for Science, Innovation and Technology, said: “Satellite connectivity is strategically important to the UK. The investment in Eutelsat is a demonstration of our commitment to this important low Earth orbit technology, alongside commitments from the French Government and other existing shareholders.”

Kyle continued: “The Government’s objectives for this investment are threefold. First, there are strategic security and resilience benefits to a competitive low Earth orbit market for satellite communications. Secondly, there is an opportunity for a company, with key technology developed and delivered from the UK, to be successful in future and support the growth of the UK space sector. Since HM Government made their earlier investment in 2020, the global satellite communications market has evolved, and the importance of resilient space capabilities and services has grown. Thirdly, this investment will establish a closer security and defence collaboration between the UK and France. Based on these objectives, the investment is value for money.”

This investment means that the UK will retain its 10.89 per cent share.

For Bharti, the stake in Eutelsat represents a critical pillar in its bid to bring satellite-based broadband services to India. Eutelsat OneWeb is one of only three firms to have received India’s Global Mobile Personal Communication by Satellite (GMPCS) licence, alongside Jio Platforms-backed SES, and Elon Musk’s Starlink.

The company has received all necessary clearances except spectrum, and commercial rollout in India is expected once the government finalises spectrum allocation norms.

Jio Platforms has partnered with Luxembourg-based SES to offer satellite broadband, and Vodafone Idea is exploring direct-to-device satellite services through a tie-up with US-based AST SpaceMobile. Global players like Amazon Kuiper and Globalstar have also filed for licences to enter the Indian market.

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Categories: Articles, Business, Funding, Satellite

Tags: Bharti, eutelsat, OneWeb