French Government Boosts Eutelsat with Strategic Investment
Eutelsat shares surged as the French government announced it would become the largest shareholder following a €1.35 billion capital increase. This strategic move aims to bolster Eutelsat, a major player in low-Earth orbit satellites, to compete with SpaceX's Starlink, enhancing France's and Europe's satellite independence.
In a significant move, the French government announced plans to become the largest shareholder in Eutelsat, prompting the satellite company's shares to rise 6% at market opening on Friday.
The government's €1.35 billion capital injection aims to strengthen Eutelsat's position in the competitive landscape dominated by Elon Musk's Starlink, said French President Emmanuel Macron in a statement. This comes as the company targets advancements in low-Earth orbit satellite technology.
Eutelsat, which merged with OneWeb in 2023, now requires substantial additional financing for further satellite development. It remains uncertain if the UK's 10.9% stake includes commitments for further investments.
(With inputs from agencies.)
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