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Bharti Space to invest $36 million in French satellite major Eutelsat
In 2023, Bharti Enterprises-backed satellite communications company OneWeb had merged with Eutelsat to become the second-largest satellite operator globally, with 669 satellites in orbit.
The reserved capital increase, valued at €716 million, will see new shares issued at €4 each — a 32 per cent premium over the recent 30-day volume-weighted average price, said Eutelsat, which is a key rival of Elon Musk's Starlink. The Agence des Participations de l'État (APE), or State Participations Agency, responsible for managing the French state's shareholdings in companies of strategic importance, will subscribe €526.4 million of this. Shipping giant CMA CGM and Le Fonds Stratégique de Participations (FSP), an investment fund owned by seven France-based insurance firms, will also invest €100.4 million and €57.8 million respectively. A separate rights issue of €634 million will also be subscribed by these investors.
Apart from supporting a dedicated debt refinancing plan, this capital increase will reinforce the company's financial flexibility by accelerating deleveraging and supporting investment in its existing Low Earth Orbit (LEO) capabilities and the future IRIS² constellation.
"By strengthening the capital of Eutelsat, the only European player in low-orbit constellations, France is ensuring its strategic independence and preparing that of Europe," French President Emmanuel Macron tweeted on Friday. Positioned as the only European operator with a fully operational Geostationary Orbit (GEO)–Low Earth Orbit (LEO) network, Eutelsat plays a pivotal role in military and secure communications. A 10-year, €1 billion contract with France's Ministry of Armed Forces further cements its role in the nation's defence and space communication strategy.
The global satellite connectivity market is expected to grow by 12 per cent per annum between 2025 and 2029. The global LEO B2B connectivity market is currently valued at over $2.1 billion and is expected to grow at a 28 per cent compounded annual growth rate through 2029, multiplying its current size fivefold over the next eight years — offering significant short to long-term growth potential.
'I am delighted that under the leadership of President Macron, the French state has decided to back Eutelsat as the European space champion and increased its shareholding by injecting a sizable investment into the company. We are also thrilled to welcome the French armed forces ministry, DGA's partnership with Eutelsat in a long-term €1 billion contract to reserve capacity on Eutelsat's Low Earth Orbit OneWeb constellation for its mission-critical needs,' said Sunil Bharti Mittal, founder and chairman, Bharti Enterprises, and co-chairman, Eutelsat Group.
Eutelsat forecasts revenue growth to reach between €1.5–1.7 billion by FY 2028–29, fuelled by strong LEO momentum. The company also expects a minimum EBITDA margin of 60 per cent by that period, supported by operational leverage. For FY 2025–26, revenues are expected to align with the previous year, while LEO revenues are projected to grow by 50 per cent year-on-year. Gross capital expenditure for FY 2025–26 is estimated at €1.0–1.1 billion, primarily directed towards LEO expansion, including procurement of new satellites and preparation for the IRIS² constellation deployment from FY 2027–28 onward.
The Department of Telecommunications (DoT) has already granted OneWeb, Reliance Jio's satellite arm Jio Space Limited, and Starlink the necessary licences to offer satellite-based broadband services in India.
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