UK joins France to increase investment in Eutelsat, Bharti Space commits €150 million

The United Kingdom, along with Bharti Space, will join France in the contemplated capital increase in satellite operator Eutelsat, a company statement said on July 10, increasing the total amount to be raised to €1.5 billion.

The UK is entering for a total of €163.3 million, supporting the financing of Eutelsat's growth in the LEO space, while Bharti Space is committing €150 million.

A contemplated capital increase is a proposed increase in a company’s share capital, which is under consideration but has not yet been executed. It implies the company is evaluating raising additional capital by issuing new shares, and the decision is subject to approval.

Sunil Bharti Mittal, Co-Chairman, Eutelsat Group said, “I am delighted that the UK has joined Bharti and the French State in announcing further investment in Eutelsat Group, and I thank Prime Minister Starmer for his vision and leadership on this matter.”

“Eutelsat’s OneWeb was the first complete low-Earth orbit constellation, and the company is the first and only provider able to provide customers with access to both low-Earth orbit and geostationary orbit services,” Sunil Bharti Mittal added.

The Reserved Capital Increase would amount to €828 million, to be subscribed by the French government for €551 million, Bharti Space for €30 million, and UK Government for €90 million.

Following the transactions, the French government would hold a stake of 29.65%, while Bharti Space and UK Government would respectively hold 17.88% and 10.89% stake.

Earlier in June, French President Emmanuel Macron had called for more investment into Eutelsat from other countries as well, such as India. "This must be the solution for our major strategic partners in the Gulf, India, Canada and Brazil," Macron had said.

For the French government, Eutelsat is a strategic bet for the Europe’s sovereignty and a viable competitor to Starlink, a dominant player in satellite internet.

Sunil Mittal had echoed Macron’s call for a wider global participation. “"I echo President Macron’s words at the Paris Air Show last month, where he urged France’s major strategic partners in the Gulf, India, Canada and Brazil to join the coalition backing Eutelsat Group as the global Space Champion.”

Peter Kyle, UK’s Secretary of State for Science, Innovation and Technology said, “As our adversaries increasingly use space technologies to harm us, resilient satellite connectivity has become essential to our continent’s national security. This investment reflects our commitment to support the development of these critical technologies and maintain an important stake in the global satellite communications sector.”

Jean-François Fallacher, Chief Executive Office of Eutelsat said, “In the current environment it is crucial that our countries continue to collaborate and support each other, including in Space, which has become a key sovereign strategic asset.”