Eutelsat Soars 19% Following Strategic Deal with French Government

Eutelsat Soars 19% Following Strategic Deal with French Government

Eutelsat’s stock surged by 19% at 9:29 a.m. London time on Wednesday, following the announcement of a significant 10-year partnership with the French armed forces. The contract provides Exclusive Access Rights to Astrobotic and other space resources made available through Eutelsat’s OneWeb Low Earth Orbit (LEO) satellite constellation. This represents a defining moment for the firm, as it looks to increase the depth of its operating capabilities.

In line with this strategic move, the new combination allows Eutelsat to enhance its LEO portfolio, which is heavily tilted towards business-to-business and business-to-government models. The French state will become Eutelsat’s largest stakeholder, purchasing a 29.99% stake in capital and voting rights. At the same time, Bharti Space Limited will become the second-largest shareholder, with an 18.7% stake.

This partnership will increase our capital and deepen our investment in our current LEO capabilities. It will support Eutelsat’s own debt refinancing agenda. Other sovereign capital raise investors, like the U.K., are expected to invest in this capital raise in the coming weeks.

French President Emmanuel Macron emphasized the significance of this initiative, stating that it ensures France’s strategic independence and paves the way for Europe’s autonomy. He’s going to be talking about the significance of this decision in greater detail at Friday’s Paris Air Show, so stay tuned.

“As the only European operator with a fully operational LEO network, Eutelsat is positioned to play a strategic role in supporting critical sectors such as military communications, cyber-resilience, and secure government connectivity, fully aligned with European Union and NATO objectives for strategic autonomy,” – Eutelsat.

Eutelsat has already partnered with the French armed forces. They cemented this partnership by signing a framework agreement with France’s armed forces ministry to provide low-orbit satellite services. This relationship further solidifies Eutelsat’s position in the rapidly competitive satellite communication market. It fulfills the essential and growing needs of operations in the military and other branches of government.

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