UK joins France in contemplated capital increase in Eutelsat
United Kingdom has joined Eutelsat €1.5 billion capital raise, where Bharti Space is committing €150 million, in a move that arms the European satellite operator. The UK has committed to subscribe to the Reserved Capital Increase (RCI) and the rights issue for a total amount of 163.3 million euro.
“The United Kingdom joins France in contemplated capital increase in Eutelsat; with Bharti Space also committing €150 million, taking the total amount to €1.5 billion,” a Eutelsat release said.
The Reserved Capital Increase and the rights issue are expected to be completed by the end of 2025.
Post the two transactions and investor participation (as planned), the French State would hold a stake of 29.65 % and voting rights, while Bharti Space, UK Government, CMA CGM and FSP would respectively hold 17.88 %, 10.89 %, 7.46 %, and 4.99 %, according to the release.
Bharti Space currently holds just over 24 % stake in Eutelsat.
According to Eutelsat’s release, the Reserved Capital Increase would amount to 828 million euro, to be subscribed by the French State via APE for € 551 million, Bharti Space for € 30 million, UK Government for €90 million, CMA CGM for € 100 million, and FSP for € 57 million. The subsequent rights issue would amount to € 672 million.
Bharti Space would infuse € 29.9 million in Reserved Capital Increase, and its contribution via rights issue would be € 120.1 million.
“This new capital injection will allow Eutelsat to go further and faster in developing innovative new technologies and services under the leadership of its new CEO Jean-Francois Fallacher,” Sunil Bharti Mittal, Co-Chairman, Eutelsat Group, said.
