Latest news with #ChristopheCaudrelier
Time of India
3 days ago
- Business
- Time of India
South Korea's Hanwha offloads Eutelsat stake as Starlink rival seeks new investors
By Gianluca Lo Nostro South Korea's Hanwha Systems said on Thursday it was selling its entire 5.4% stake in Eutelsat for about 78 million euros ($85 million), as the Franco-British satellite operator seeks new investors. Eutelsat has garnered unprecedented attention this year from governments looking for home-grown alternatives to SpaceX's Starlink for satellite internet connectivity. The company is working on a new financing plan to fund the second generation of its low Earth orbit (LEO) OneWeb satellites and to fulfil commitments to the European Union 's IRIS² project. It has piled up hundreds of millions of euros in losses, particularly from its waning video business, while its 2023 acquisition of OneWeb has yet to yield the results it had hoped for due to competition and delayed deployment of technology. Finance chief Christophe Caudrelier said in May that Eutelsat was looking for capital investors. Hanwha's shares were offered at 3.00 euros ($3.42) apiece, representing a 13.9% discount to Eutelsat's closing price of 3.48 euros on Wednesday, a term sheet from bookrunner Citi showed. It also marks a steep 74% loss on Hanwha's initial $300 million investment made in OneWeb in 2021, with the stake now valued at just $85 million. The South Korean company said the sale, which is set to be concluded on Thursday, was not driven by an investment perspective but by a strategic shift to focus more on its core business operations. "This decision reflects a long-term strategy to concentrate on defense-related satellites and military communications , rather than on civilian satellite operations and services," Hanwha said in a statement to Reuters. A representative for Hanwha resigned from Eutelsat's board in April, signalling the company's diminishing involvement with the satellite operator. MAJOR OVERHAUL When asked by Reuters, Eutelsat said none of the other shareholders had expressed interest in selling their shares. A company spokesperson declined to comment on media reports saying France may raise its stake in the group. Eutelsat is also reshuffling its upper echelons. In a surprise move last month, it appointed Jean-Francois Fallacher as its new CEO and it is looking for a new chairperson after the current one announced his departure in February. Eutelsat's Paris-listed shares fell as much as 16.8% in early trading on Thursday. Hanwha became a shareholder in OneWeb before it merged with Eutelsat. It is also one of OneWeb's distributors in South Korea as part of an agreement signed in 2023 with the aim of securing LEO communications for the government and providing internet access to underserved areas. Last week, South Korea's Science Ministry granted licenses to Starlink and Eutelsat OneWeb to operate in the country, with services expected to be launched soon.
Korea Herald
3 days ago
- Business
- Korea Herald
Hanwha offloads Eutelsat stake as Starlink rival seeks new investors
South Korea's Hanwha Systems said on Thursday it was selling its entire 5.4 percent stake in Eutelsat for 77.6 million euros ($88.5 million), as the Franco-British satellite operator seeks new investors. Eutelsat has garnered unprecedented attention this year from governments looking for home-grown alternatives to SpaceX's Starlink for satellite internet connectivity. The company is working on a new financing plan to fund the second generation of its low Earth orbit (LEO) OneWeb satellites and to fulfil commitments to the European Union's IRIS² project. It has piled up hundreds of millions of euros in losses, particularly from its waning video business, while its 2023 acquisition of OneWeb has yet to yield the results it had hoped for due to competition and delayed deployment of technology. Finance chief Christophe Caudrelier said in May that Eutelsat was looking for capital investors. Hanwha's shares were offered at 3.00 euros ($3.42) apiece, representing a 13.9 percent discount to Eutelsat's closing price of 3.48 euros on Wednesday, a term sheet from bookrunner Citi showed. It also marks a steep 70.5 percent loss on Hanwha's initial $300 million investment made in OneWeb in 2021, with the stake now valued at just $88.5 million. Eutelsat's Paris-listed shares fell 14.8 percent by 0920 GMT. Only 21 percent of Eutelsat's shares are publicly traded, making the stock prone to sharp price swings. However, the yield on its 2029 9.75 percent bond fell to 7.71 percent, showing a positive shift in bondholder confidence. Hanwha said the sale, which was set to be concluded on Thursday, was not driven by an investment perspective but by a strategic shift to focus more on its core business operations. "This decision reflects a long-term strategy to concentrate on defense-related satellites and military communications, rather than on civilian satellite operations and services," Hanwha said in a statement to Reuters. A representative for the South Korean company resigned from Eutelsat's board in April, signalling its diminishing involvement with the satellite operator. Major overhaul When asked by Reuters, Eutelsat said none of the other shareholders had expressed interest in selling their shares. A company spokesperson declined to comment on media reports saying France may raise its stake in the group. Bloomberg News and The Telegraph have reported that France is considering doubling its stake in Eutelsat and is in talks to raise 1.5 billion euros. Eutelsat is also reshuffling its upper echelons. In a surprise move last month, it appointed Jean-François Fallacher as its new CEO and it is looking for a new chairperson after the current one announced his departure in February. Hanwha became a shareholder in OneWeb before it merged with Eutelsat, and it is one of OneWeb's distributors in South Korea as part of an agreement signed in 2023 with the aim of securing LEO communications for the government and providing internet access to underserved areas. Last week, South Korea's Science Ministry granted licenses to Starlink and Eutelsat OneWeb to operate in the country, with services expected to be launched soon.
CNA
3 days ago
- Business
- CNA
South Korea's Hanwha offloads Eutelsat stake as Starlink rival seeks new investors
South Korea's Hanwha Systems said on Thursday it was selling its entire 5.4 per cent stake in Eutelsat for about 78 million euros ($85 million), as the Franco-British satellite operator seeks new investors. Eutelsat has garnered unprecedented attention this year from governments looking for home-grown alternatives to SpaceX's Starlink for satellite internet connectivity. The company is working on a new financing plan to fund the second generation of its low Earth orbit (LEO) OneWeb satellites and to fulfil commitments to the European Union's IRIS² project. It has piled up hundreds of millions of euros in losses, particularly from its waning video business, while its 2023 acquisition of OneWeb has yet to yield the results it had hoped for due to competition and delayed deployment of technology. Finance chief Christophe Caudrelier said in May that Eutelsat was looking for capital investors. Hanwha's shares were offered at 3.00 euros ($3.42) apiece, representing a 13.9 per cent discount to Eutelsat's closing price of 3.48 euros on Wednesday, a term sheet from bookrunner Citi showed. It also marks a steep 74 per cent loss on Hanwha's initial $300 million investment made in OneWeb in 2021, with the stake now valued at just $85 million. The South Korean company said the sale, which is set to be concluded on Thursday, was not driven by an investment perspective but by a strategic shift to focus more on its core business operations. "This decision reflects a long-term strategy to concentrate on defense-related satellites and military communications, rather than on civilian satellite operations and services," Hanwha said in a statement to Reuters. A representative for Hanwha resigned from Eutelsat's board in April, signalling the company's diminishing involvement with the satellite operator. MAJOR OVERHAUL When asked by Reuters, Eutelsat said none of the other shareholders had expressed interest in selling their shares. A company spokesperson declined to comment on media reports saying France may raise its stake in the group. Eutelsat is also reshuffling its upper echelons. In a surprise move last month, it appointed Jean-François Fallacher as its new CEO and it is looking for a new chairperson after the current one announced his departure in February. Eutelsat's Paris-listed shares fell as much as 16.8 per cent in early trading on Thursday. Hanwha became a shareholder in OneWeb before it merged with Eutelsat. It is also one of OneWeb's distributors in South Korea as part of an agreement signed in 2023 with the aim of securing LEO communications for the government and providing internet access to underserved areas. Last week, South Korea's Science Ministry granted licenses to Starlink and Eutelsat OneWeb to operate in the country, with services expected to be launched soon.
The Star
3 days ago
- Business
- The Star
South Korea's Hanwha to offload Eutelsat stake, filing shows
The logo of the European satellite operator Eutelsat is seen at the company's headquarters in Issy-les-Moulineaux near Paris, France, October 11, 2021. REUTERS/Gonzalo Fuentes (Reuters) -South Korea's Hanwha Systems is offering to sell its entire 5.4% stake in Eutelsat for about 78 million euros ($85 million), a bookrunner filing showed on Wednesday, as the satellite operator moves ahead with its new financing plan. Eutelsat has garnered unprecedented attention this year from governments looking for home-grown alternatives to SpaceX's Starlink for satellite internet connectivity. The Franco-British company is seeking billions in new funding to finance the second generation of its low Earth orbit (LEO) OneWeb satellites and to fulfil commitments to the European Union's IRIS² project. Finance chief Christophe Caudrelier said in May that Eutelsat was looking for capital investors. Hanwha's shares are being offered at 3.00 euros ($3.42) apiece, representing a 13.9% discount to Eutelsat's closing price of 3.48 euros on Wednesday, a term sheet from bookrunner Citi showed. It also marks a steep 74% loss on Hanwha's initial $300 million investment made in OneWeb in 2021, as the stake is now valued at just $85 million. The trade is set to be concluded on Thursday. A representative for Hanwha resigned from Eutelsat's board in April, signalling the Korean company's diminishing involvement with the satellite operator. Eutelsat is reshuffling its upper echelons. In a surprise move last month, it appointed Jean-François Fallacher as its new CEO and it is also looking for a new chairperson after the current one announced his departure along with four other board members in February. Hanwha became a shareholder in OneWeb before it merged with Eutelsat in 2023, joining India's Bharti and Japan's SoftBank as OneWeb's anchor investors at the time. It is also one of OneWeb's distributors in South Korea as part of an agreement signed in 2023 with the aim of securing LEO communications for the Korean government and providing internet access to underserved areas. Last week, South Korea's Science Ministry granted licenses to Starlink and Eutelsat OneWeb to operate in the country, with services expected to be launched soon. ($1 = 0.8764 euros) (Reporting by Gianluca Lo Nostro in Gdansk, editing by Milla Nissi-Prussak)
CNA
3 days ago
- Business
- CNA
South Korea's Hanwha to offload Eutelsat stake, filing shows
South Korea's Hanwha Systems is offering to sell its entire 5.4 per cent stake in Eutelsat for about 78 million euros ($85 million), a bookrunner filing showed on Wednesday, as the satellite operator moves ahead with its new financing plan. Eutelsat has garnered unprecedented attention this year from governments looking for home-grown alternatives to SpaceX's Starlink for satellite internet connectivity. The Franco-British company is seeking billions in new funding to finance the second generation of its low Earth orbit (LEO) OneWeb satellites and to fulfil commitments to the European Union's IRIS² project. Finance chief Christophe Caudrelier said in May that Eutelsat was looking for capital investors. Hanwha's shares are being offered at 3.00 euros ($3.42) apiece, representing a 13.9 per cent discount to Eutelsat's closing price of 3.48 euros on Wednesday, a term sheet from bookrunner Citi showed. It also marks a steep 74 per cent loss on Hanwha's initial $300 million investment made in OneWeb in 2021, as the stake is now valued at just $85 million. The trade is set to be concluded on Thursday. A representative for Hanwha resigned from Eutelsat's board in April, signalling the Korean company's diminishing involvement with the satellite operator. Eutelsat is reshuffling its upper echelons. In a surprise move last month, it appointed Jean-François Fallacher as its new CEO and it is also looking for a new chairperson after the current one announced his departure along with four other board members in February. Hanwha became a shareholder in OneWeb before it merged with Eutelsat in 2023, joining India's Bharti and Japan's SoftBank as OneWeb's anchor investors at the time. It is also one of OneWeb's distributors in South Korea as part of an agreement signed in 2023 with the aim of securing LEO communications for the Korean government and providing internet access to underserved areas. Last week, South Korea's Science Ministry granted licenses to Starlink and Eutelsat OneWeb to operate in the country, with services expected to be launched soon.
