Eutelsat Communications has increased its stake in OneWeb to 22.9 percent from 17.6 percent for a consideration of $165 million.
Eutelsat has exercised a call option on a portion of the latest OneWeb funding round subscribed by India’s Bharti Enterprises.
The transaction was undertaken on identical financial terms to Eutelsat’s initial investment of $550 million announced in April. The completion of this latest transaction is expected around year-end 2021 subject to regulatory authorisations.
OneWeb’s capital structure has been further strengthened with an additional $500 million commitment by Bharti completing the funding of its first-generation constellation and a $300 million capital injection from South Korea’s Hanwha.
Eutelsat’s 22.9 percent stake in OneWeb will make it the second largest shareholder behind Bharti with 30 percent.
Eutelsat’s investment comes after it delivered a strong FY 2021 performance in terms of cash flow generation and leverage reduction.
Eutelsat, a satellite company based in France, has recently rejected a takeover proposal from billionaire Patrick Drahi for 12.10 euros per share.