French Government Doubles Stake in Eutelsat with €1.35 Billion Capital Raise
Eutelsat secures €1.35 billion capital raise, doubling French government's stake to 30%.
Key Points
- • Eutelsat secures €1.35 billion capital injection from the French government.
- • French state's stake increases to nearly 30%, more than doubling its previous ownership.
- • The capital raise aims to reduce Eutelsat's net debt significantly and close a €4 billion financing gap.
- • Eutelsat positions itself to compete with rivals like SpaceX's Starlink and serve military communications.
Eutelsat has successfully secured a significant €1.35 billion capital injection, primarily backed by the French government, effectively doubling its stake in the satellite company from 13.6% to nearly 30%. The French state will invest about €717 million in this capital raise, with other shareholders contributing the remaining funds by the end of the year. This move positions Eutelsat strategically to enhance its services and competitiveness, particularly in light of rival companies like SpaceX's Starlink.
As part of this capital increase, Eutelsat aims to reduce its net debt by 2.5 times and tackle a notable €4 billion financing gap. With its recent acquisition of OneWeb in 2023, Eutelsat is making significant strides towards transforming itself into Europe's key alternative for low Earth orbit (LEO) satellite services.
Eutelsat plans to invest heavily, approximately €2 billion, to upgrade its existing satellite infrastructure and develop the IRIS2 European space program. Despite being one of only two global companies with active commercial LEO fleets, Eutelsat recognizes the challenge it faces in competing against well-established industry players.
Eutelsat CEO Jean Francois-Fallacher stated, "We are prepared to become a central player in the development of Europe’s sovereign space capabilities," highlighting the firm’s commitment to supporting critical sectors, including military communications and secure government connectivity.
Notably, this funding initiative comes on the heels of Eutelsat’s recent agreement to provide connectivity services valued at up to €1 billion for the French military, further cementing its role in integrating satellite technology within European defense frameworks.