Eutelsat Communications (OTC:EUTLF) SA (ETL) and Bharti-backed OneWeb announced on Thursday a successful all-share combination, forming the Eutelsat Group. The merger has created the world's first integrated geostationary (GEO) and low Earth orbit (LEO) satellite communications entity. The new entity aims to revolutionize space communications and cater to the rapidly expanding connectivity market.
The Paris-based Eutelsat Group will continue to operate OneWeb commercially as "Eutelsat OneWeb," with its operational center in London. ETL remains listed on Euronext Paris and has applied for a standard listing on the London Stock Exchange.
Bharti Enterprises has emerged as the principal shareholder in the newly merged entity, securing a 21.2% stake. Sunil Bharti Mittal, Founder and Chairman of Bharti Enterprises, will serve as vice-president (co-chair) of the board of directors, while Shravin Bharti Mittal, who led the OneWeb investment, will be Bharti’s representative as a director on the Eutelsat Board. Akhil Gupta will continue his role as a director on the board of OneWeb, now a 100% subsidiary of Eutelsat.
The merger is set to unlock new possibilities in bridging the digital divide and advancing global connectivity goals, leveraging Eutelsat’s GEO fleet and OneWeb’s LEO constellation for integrated connectivity services.
With OneWeb’s network going global in 2023, the combined GEO-LEO service is expected to open up new markets, including Fixed Connectivity, Government Services, Mobile Connectivity, and advanced Broadcast and video services. The company anticipates double-digit revenue growth reaching approximately €2 billion in 2027, outpacing growth in adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization).
"The business combines compelling strategy, technology, and talent to deliver across several markets and verticals and together we are well-positioned to deliver value for all our shareholders,” Mittal added.
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