OneWeb-Eutelsat merger a significant development: Sunil Bharti Mittal

Eutelsat and OneWeb said in a joint statement that each will hold a 50 percent stake in the combined firm. Satellite broadband promises to bring coverage to the most remote areas of the planet by removing the need for antennas and other infrastructure.

The transaction will be structured as an exchange of OneWeb shares for newly issued Eutelsat shares. This does not include the ‘Special Share’ in OneWeb which is retained by the UK Government along with the existing rights associated with it. OneWeb shareholders will receive 230 million newly issued Eutelsat shares, representing 50% of Eutelsat’s increased share capital.

The number of new Eutelsat shares to be acquired by existing OneWeb shareholders will not be affected by the payment of a €0.93 per share dividend with a scrip option for the fiscal year 2011-22 proposed at Eutelsat’s upcoming AGM.

Trading under its current name, OneWeb will continue to operate the LEO business, with OneWeb headquartered in the UK.

Representing a transformative transaction built on a strong foundation established in April 2021 with Eutelsat’s initial investment in OneWeb, this combination is a global leader uniquely positioned to capture the rapidly growing connectivity market with complementary GEO/LEO offerings. makes.

Sunil Bharti Mittal, OneWeb Executive Chairman said, “Having pioneered connectivity in an emerging world, I am excited about the prospects of connecting the unconnected. The combination of Eutelsat and OneWeb is a significant development in that direction as well as a unique GEO. /LEO represents a combination. The positive early results of our service combined with our strong pipeline represent a very exciting opportunity in the rapidly growing satellite connectivity segment, especially for customers who require a high-speed, low-latency experience Our clients are actively seeking a combined GEO/LEO offering to lead us on this important step. Bharti, as a major shareholder of OneWeb, along with other major shareholders, OneWeb and Eutelsat We look forward to playing a meaningful role in providing extended connectivity through a combination of

Eutelsat and OneWeb will address the vast opportunities in the connectivity market, driven by the growing need of customers in both B2B and B2C segments for consistent, reliable connectivity. These market segments are projected to grow three and five-fold, respectively, over the next decade, to reach a combined value of approximately $16bn by 2030, fueled by both GEO HTS and LEO capacity.

Furthermore, the combination of the network density, compelling economics, and high throughput of GEO with the low latency and ubiquity of LEO, makes it the optimal solution to address a wide range of customer needs, thereby expanding the addressable market.

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