LE BOURGET—French satellite service operator Eutelsat, whose OneWeb system competes with SpaceX’s Starlink, is raising €1.35 billion ($1.6 billion) with backing from the French government, which will become the largest shareholder in the business.
France will own a 29.99% share in Eutelsat as a result of the transaction, which is due to close by year's end.
Eutelsat says its OneWeb should be fully operational by the end of 2026 and has a revenue backlog of €3.7 billion.
“This capital increase will reinforce the company’s financial flexibility by accelerating its deleveraging and support investment in its existing low-Earth-orbit capabilities and the future IRIS² constellation,” Eutelsat said in reference to a European effort to build a secure, autonomous rival to Starlink. The deal would help Eutelsat pare debt.
French President Emmanuel Macron, during a June 20 visit to the Paris Air Show, said the investment, in part, reflected an effort to deploy IRIS² “as quickly as possible” and the fact that Eutelsat gives Europe autonomy from U.S. and Chinese systems.
Shareholders are set to vote on the proposal before the end of September.
Eutelsat projects gross capital expenditure of around €1 billion- €1.1 billion in its 2025–26 fiscal year. But the company also sees capital requirements of around €2 billion for its share of investment in IRIS2.
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