Eutelsat has secured a substantial investment from the UK government, totaling £90 million, as part of a wider capital increase. This move, initially announced during a state visit by French President Emmanuel Macron, positions Eutelsat as a key player in providing a European alternative to Elon Musk's Starlink Low Earth Orbit service.
Alongside the UK, other investors including the French State, Bharti Space Limited, CMA CGM, and FSP, are contributing to the €163.3 million investment. This commitment is contingent upon shareholder and regulatory approvals, and the finalization of an amended shareholders’ agreement. The Reserved Capital Increase will reach €828 million, with the UK's contribution representing a significant portion.
“We are delighted by this support from His Majesty’s Government, which has been one of the mainstays of OneWeb, and subsequently Eutelsat’s anchor shareholders from the outset of our Low Earth Orbit journey,” stated Jean-François Fallacher, Chief Executive Office of Eutelsat. “We remain committed to the UK which we consider as one of our home markets and to supporting the development of OneWeb to address the needs of all our sovereign and commercial stakeholders.”
Peter Kyle, Secretary of State for Science, Innovation and Technology, emphasized the UK government's commitment to supporting critical technologies. He highlighted the crucial role of satellites in the UK economy, stating: “From checking the weather forecast on our phones to navigating with GPS in our cars, satellites underpin industrial activity worth £364 billion to the UK economy. But their critical role extends far beyond economic growth. As our adversaries increasingly use space technologies to harm us, resilient satellite connectivity has become essential to our continent’s national security.”
Following the transactions, the French State will maintain a 29.65% stake in Eutelsat. This investment reinforces the significance of satellite technology for both economic prosperity and national security, showcasing the UK's continued dedication to the sector.