Business
Bharti Group-Backed OneWeb And Eutelsat Agree To Combine Their Fleet Of GEO, LEO Satellites In An All-Share Deal
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The shareholders of Bharti group backed OneWeb and French satellite operator Eutelsat have signed a Memorandum of Understanding (MoU) to combine both companies in an all-share transaction.
The French geo-stationary satellite operator will combine its 36-strong fleet of GEO (Geosynchronous Equatorial Orbit) satellites with OneWeb’s constellation of 648 Low Earth Orbit (LEO) satellites, of which 428 are currently in orbit, to creat a leading global player in connectivity.
"The transaction would be structured as an exchange of OneWeb shares by its shareholders (other than Eutelsat) with new shares issued by Eutelsat, such that, at closing, Eutelsat would own 100 per cent of OneWeb (excluding the ‘Special Share’ of the UK Government)" the company said in a statement on Monday (25 July).
The transaction will be subject to clearance from relevant regulatory authorities and is also conditional on approval by Eutelsat’s shareholders at an Extraordinary General Meeting (EGM) of Eutelsat, to take place by end of first half 2023. Bpifrance and Fonds Stratégique de Participations have undertaken to vote in favour of the transaction-related resolutions at this EGM, subject to usual conditions.
OneWeb shareholders would receive 230 million newly issued Eutelsat shares representing 50 per cent of the enlarged share capital, the company said.
Commenting on the combination, Sunil Bharti Mittal, OneWeb’s Executive Chairman said, “Having played a pioneering role in providing connectivity in the emerging world, I am excited about the possibilities of connecting the unconnected. The combination of Eutelsat and OneWeb represents a significant development in that direction as well as a unique GEO/LEO combination. The positive early results of our service together with our strong pipeline represent a very exciting opportunity in the fast-growing satellite connectivity segment, especially for customers requiring a high speed, low latency experience".
"Our customers are actively seeking a combined GEO/LEO offering leading us towards this important step. Bharti, as the lead shareholder of OneWeb, along with other key shareholders, is looking forward to playing a meaningful role in providing expanded connectivity through the combination of OneWeb and Eutelsat.” Mittal said.
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