Eutelsat, OneWeb Brace To Unite To Compete SpaceX: Report
Eutelsat Communications SA (OTC: ETCMY) and OneWeb Ltd braced to combine in an all-share deal.
The deal valued the U.K. satellite operator at $3.4 billion, Bloomberg reports.
The initiative aimed to create a European champion to rival the likes of Tesla, Inc (NASDAQ: TSLA) CEO Elon Musk’s SpaceX.
The deal offers Eutelsat a “unique position” on the market and has the potential to generate €1.5 billion ($1.53 billion) in increased revenue, investments, and cost synergies, the companies said.
Also Read: Here’s Why OneWeb Resorted To Elon Musk’s SpaceX For Satellite Launch
OneWeb shareholders will hold 50% of Eutelsat, which will continue to be listed in Paris and seek a London Stock Exchange listing.
OneWeb shareholders would receive 230 million newly issued Eutelsat shares representing 50% of the enlarged share capital.
The combined entity will have a €1.2 billion revenue and €0.7 billion EBITDA for fiscal 2022-2023.
The U.K. and French governments have stakes in OneWeb and Eutelsat, respectively.
The U.K. will continue to own a particular share, giving it certain veto rights over strategic decisions.
OneWeb will retain its branding and operate the low-orbit business of the combined group, which will have a primary listing in Paris.
Eutelsat Chair Dominique D’Hinnin Eis will become the Chairman of the combined entity, with his OneWeb counterpart Sunil Bharti Mittal as Co-chair.
Eutelsat CEO Eva Berneke will run the new group.
The new company will combine Eutelsat’s geostationary earth orbit satellites and OneWeb’s low orbit satellites.
Previously, Amazon.com Inc’s (NASDAQ: AMZN) Kuiper Systems LLC sought to launch another 4,538 satellites intensifying rivalry with SpaceX.
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