France is set to more than double its share in satellite operator Eutelsat—from 13.6% to nearly 30%—as part of a €1.56 billion capital increase aimed at refreshing the OneWeb constellation and financing Europe’s sovereign broadband projects.
Two-Step Funding Plan
- Anchor Tranche (€716 million)
- Priced at €4 per share, a 32% premium to the 30-day average
- Subscribed by: French state (via APE), CMA CGM, Bharti Airtel, and FSP (insurance fund)
- Rights Issue (€634 million)
- Open to all existing shareholders
Together, these rounds will reduce Eutelsat’s debt and unlock better loan terms, including support from export credit agencies.
Why Now?
- OneWeb Refresh: Most OneWeb satellites (launched 2020–2023) reach end-of-life by 2028. Eutelsat commits up to €2.2 billion for 440 replacement satellites, with the first 100 from Airbus launching in late 2026.
- IRIS² Partnership: A further €2 billion investment will fund Europe’s public-private IRIS² broadband constellation, targeted for service around 2030.
- Security Push: The French military’s new 10-year, €1 billion OneWeb services contract underscores the strategic importance of secure, multi-orbit connectivity.
Shifting Shareholding
- APE (state holdings) swaps into Bpifrance’s 13.6% and leads the financing.
- Post-raise stakes: France 29.99%, Bharti 18.7%, CMA CGM 7.8%, FSP 5.2%.
- Discussions continue with the U.K. government—co-owner of OneWeb rescue—plus other potential investors.
“Strengthening Eutelsat’s capital reinforces Europe’s digital sovereignty,” said France’s Economy Minister Eric Lombard, highlighting space connectivity as a driver for innovation and growth.
