Latest news with #Starlink
France 24
9 hours ago
- Business
- France 24
France becomes biggest shareholder in Eutelsat, EU rival to Musk's Starlink
The French state is set to become Eutelsat's biggest shareholder following a 1.35 billion-euro ($1.55 billion) investment that the financial ministry said will help the satellite company compete with Elon Musk 's Starlink. Debt-laden Eutelsat has garnered unprecedented attention this year from European governments seeking alternatives to reliance on US satellite companies. "The race is on. That's why we have to take a position now and invest now. Otherwise, the whole market will be occupied and France and Europe will depend on other powers in future," Macron's office told AFP. The 717 million-euro capital injection by the French state, which was part of an overall deal with other investors worth 1.35 billion euros, will make Paris Eutelsat's largest shareholder, raising its stake from 13 percent to just under 30 percent. The announcement comes as competition heats up in the satellite communications sector, where Elon Musk's Starlink is a dominant player, but some governments would prefer sovereign solutions. Eutelsat boasts more than 600 satellites since merging with British firm OneWeb in 2023, making it the world's second-largest operator of low Earth orbit (LEO) satellites, behind Starlink, and the obvious candidate as a European champion. The company has in the past called itself "the only LEO alternative to Starlink". "Eutelsat is a strategic asset contributing to European strategic autonomy," French Finance Minister Éric Lombard's office said. But it remains far smaller than the American heavyweight, which has 6,000 satellites lofted into orbit by Musk's comparatively cheap, reusable SpaceX rockets. Set to be completed by the end of this year, the capital increase is "a pivotal step in Eutelsat's strategic and financing roadmap, enabling the execution of its strategic vision", it said. The new investment will fund a renewal of Eutelsat's satellite fleet and improve its financial situation, including through a debt restructuring. Eutelsat is also gearing up to contribute to the Iris² network of European satellites in multiple orbits, supposed to offer communication services from 2030. Rush for connectivity "The war in Ukraine has shown the importance of space infrastructure for resilient communications infrastructure, whether civilian or military," Lombard's office said. "It has also spotlighted Europe's dependence on non-European technology." Musk has called Starlink the "backbone" of the Ukrainian army because of its wide use defending against Russia's invasion since 2022 – and warned that "their entire front line would collapse if I turned it off", sending Europeans scrambling for alternatives. Eutelsat had already this week signed a 10-year, billion-euro deal at the Paris Air Show to provide military communications for the French armed forces. And presenting its latest quarterly results last month, the firm said it was in active sales talks with governments both inside and outside Europe. Major shareholders stumping up money alongside Paris are shipping giant CMA CGM, Indian telecoms operator Bharti Airtel and the FSP investment fund, owned by seven French insurance companies. The two-stage plan includes a "reserved" capital increase open only to the four named investors, with a second round open to others. "Discussions are ongoing" with other investors including the British government, "which could join the capital raise in due course", Eutelsat said.
Yahoo
10 hours ago
- Business
- Yahoo
French state leads capital increase for satellite operator Eutelsat
The French state will become the biggest investor in European satellite operator and Starlink competitor Eutelsat, leading a capital increase alongside private shareholders, the company said Thursday. Paris's holdings will increase to just under 30 percent from 13 percent, Eutelsat said, in an overall deal set to be completed by the end of this year that will see 1.35 billion euros ($1.5 billion) injected into the company. The announcement comes as competition heats up in the satellite communications sector, where Elon Musk's Starlink is a dominant player but some governments are keen on sovereign solutions. "The race is on. That's why we have to take a position now and invest now. Otherwise, the whole market will be occupied and France and Europe will depend on other powers in future,' President Emmanuel Macron's office told AFP. Boasting more than 600 satellites since merging with British firm OneWeb in 2023, Eutelsat is the world's second-largest operator of low Earth orbit (LEO) satellites, behind Starlink, making it the obvious candidate as a European champion. The company has been pushing for new government contracts, signing a 10-year, billion-euro deal at this week's Paris Air Show to provide military communications for the French armed forces. Presenting its most recent quarterly results last month, Eutelsat said it was in active sales talks with governments both inside and outside Europe. The capital increase should allow Eutelsat to push ahead with renewing its satellite fleet, the company said. Major shareholders stumping up alongside Paris were shipping giant CMA CGM, Indian telecoms operator Bharti Airtel and the FSP investment fund, owned by seven French insurance companies. The two-stage plan includes a "reserved" capital increase open only to the four named investors, with a second round open to others. "Discussions are ongoing" with other investors including the British government, "which could join the capital raise in due course," Eutelsat said. "The capital increase would represent a pivotal step in Eutelsat's strategic and financing roadmap, enabling the execution of its strategic vision," it added, with other financial operations planned including debt refinancing. Mgn-dax-fff/tgb/js Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
France 24
12 hours ago
- Business
- France 24
French state leads capital increase for satellite operator Eutelsat
Paris's holdings will increase to just under 30 percent from 13 percent, Eutelsat said, in an overall deal set to be completed by the end of this year that will see 1.35 billion euros ($1.5 billion) injected into the company. The announcement comes as competition heats up in the satellite communications sector, where Elon Musk's Starlink is a dominant player but some governments are keen on sovereign solutions. "The race is on. That's why we have to take a position now and invest now. Otherwise, the whole market will be occupied and France and Europe will depend on other powers in future,' President Emmanuel Macron's office told AFP. Boasting more than 600 satellites since merging with British firm OneWeb in 2023, Eutelsat is the world's second-largest operator of low Earth orbit (LEO) satellites, behind Starlink, making it the obvious candidate as a European champion. The company has been pushing for new government contracts, signing a 10-year, billion-euro deal at this week's Paris Air Show to provide military communications for the French armed forces. Presenting its most recent quarterly results last month, Eutelsat said it was in active sales talks with governments both inside and outside Europe. The capital increase should allow Eutelsat to push ahead with renewing its satellite fleet, the company said. Major shareholders stumping up alongside Paris were shipping giant CMA CGM, Indian telecoms operator Bharti Airtel and the FSP investment fund, owned by seven French insurance companies. The two-stage plan includes a "reserved" capital increase open only to the four named investors, with a second round open to others. "Discussions are ongoing" with other investors including the British government, "which could join the capital raise in due course," Eutelsat said. "The capital increase would represent a pivotal step in Eutelsat's strategic and financing roadmap, enabling the execution of its strategic vision," it added, with other financial operations planned including debt refinancing.
Reuters
12 hours ago
- Business
- Reuters
France tightens grip on Eutelsat through 1.35 bln-euro shares sale
PARIS, June 19 (Reuters) - The French state will become Eutelsat's ( opens new tab top shareholder following a 1.35 billion-euro ($1.55 billion) capital increase aimed at helping the satellite company better compete with Elon Musk's Starlink, the finance ministry said on Thursday. The capital injection will deliver a shot in the arm to debt-laden Eutelsat, which has garnered unprecedented attention this year from European governments looking for alternatives to compete with Elon Musk's Starlink. France's state shareholding agency will inject 717 million euros, or more than half of the sum, into the company, the ministry said. The agency will also acquire the stake held by France's state-owned investment bank Bpifrance in Eutelsat as part of the company, a government official said, bringing France's total stake to 29.99%. "The French government is proud to support Eutelsat. By participating in its capital increase, we are supporting a decisive stage in its development. Satellite connectivity is a strategic issue for our industrial and digital sovereignty," Finance Minister Eric Lombard said. ($1 = 0.8721 euros)
Bloomberg
13 hours ago
- Business
- Bloomberg
Eutelsat Raises €1.35 Billion Led by France to Aid OneWeb
Eutelsat Communications SA said it has commitments for €1.35 billion ($1.5 billion) from the French government and other investors in a deal that will help the European Starlink rival build out its fleet of satellites. The French government will invest €717 million in Eutelsat, the Finance Ministry said in a statement on Thursday. The investment takes France's stake to almost 30%. Existing investors including Fonds Stratégique de Participations, French shipping company CMA CGM and Bharti Space will also participate in the round, which will be completed by year end, Eutelsat said in a separate statement.
