Both the UK and France are Considering Raising their Capital in Eutelsat

News Desk, News Nation 360 : The United Kingdom will take part in the planned capital increase that Eutelsat (ISIN: FR0010221234-Euronext Paris/London Stock Exchange: ETL) announced on June 19, 2025. This extra contribution from a second important reference shareholder will raise €1.5 billion in total, supporting Eutelsat's long-term strategic plan even more. Sunil Bharti Mittal, Co-Chairman, Eutelsat Group, stated that Prime Minister Starmer's vision and leadership on this issue are greatly appreciated, and he is thrilled that the UK has joined Bharti and the French State in announcing additional investment in Eutelsat Group. Eutelsat is in a unique position to provide governments with the safe and dependable sovereign connectivity solutions they need today. In addition to being the first and only firm to offer clients access to both low-Earth orbit and geostationary orbit services, Eutelsat's OneWeb was the first full low-Earth orbit constellation. Under the direction of its new CEO, Jean-François Fallacher, this additional funding will enable Eutelsat to advance and accelerate the development of cutting-edge new technologies and services. His Majesty's Government, represented by the UK Secretary of State for Science, Innovation and Technology, and the French State (through APE), Bharti Space Limited, CMA CGM, and FSP are pledging a combined total of €163.3 million. This investment will be done via a "Reserved Capital Increase" and a "Rights Issue." A "Reserved Capital Increase" is when there is new share issue to targeted investors, whereas a "Rights Issue" provides current holders of shares an opportunity to purchase additional shares, usually at discounted prices. These commitments remain subject to shareholder approvals at an Extraordinary Shareholders' Meeting towards the end of the third quarter of 2025. These are also subject to the usual regulatory approvals and a new shareholders' agreement. These investors have further committed to vote for the transaction at the meeting and retain share ownership until the Rights Issue is launched. The Reserved Capital Increase will amount to €828 million, with the French State adding €551 million, Bharti Space Limited €30 million, His Majesty's Government €90 million, CMA CGM €100 million, and FSP €57 million. Thereafter, a Rights Issue will raise €672 million. Both transactions should be completed by the end of 2025. Following these transactions, and subject to other investors participating, the French State will retain 29.65% of the capital and voting rights. Bharti Space Limited will retain 17.88%, His Majesty's Government 10.89%, CMA CGM 7.46%, and FSP 4.99%. The Reserved Capital Increase Investors shall not be in a position to initiate a public takeover.