Eutelsat Communications has exercised a purchase option for a total amount of $165 million, thereby increasing its stake in OneWeb from 17.6% to 22.9%. Eutelsat is taking another step forward in the direction it began a few years ago, toward the possibility of accessing high-speed Internet via satellite.
OneWeb has developed a project for a constellation of telecommunications satellites that will provide individuals with high-speed internet access in regions not served by terrestrial links, starting in 2022.
This is a major opportunity for the African population that could become a reality in the near future.
However, it has not all been plain sailing: after serious financial difficulties, OneWeb was taken over in October 2020 by a consortium comprising the British government and the Bharti Group, joined in 2021 by Eutelsat.
As Eutelsat states in its press release, OneWeb has enjoyed strong momentum in recent months, both operationally, with a 100% launch success rate resulting in nearly half of the fleet being placed in orbit, and commercially, with the signing of several distribution contracts ahead of its partial commissioning scheduled for the end of 2021.
EUTELSAT's 22.9% stake in OneWeb will make it the second-largest shareholder behind Bharti (30.0%), consolidating its position as a major shareholder and partner of OneWeb.
Rodolphe Belmer, CEO of Eutelsat, said of this new transaction: "We are particularly proud to seize this opportunity to strengthen our partnership with OneWeb. The remarkable progress made by OneWeb towards the imminent launch of its fleet, as well as the confidence shown in it by its investors and future customers, reinforce our belief that OneWeb has all the assets to establish itself in the low Earth orbit (LEO) satellite constellation segment. "
Eutelsat's acquisition of a stake in OneWeb follows the Group's solid performance in fiscal year 2020-21 in terms of cash generation and debt reduction, and is in line with Eutelsat's financial policy. As of June 30, 2021, Eutelsat had €1.9 billion in cash and cash equivalents and undrawn credit lines.