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PARIS - Satellite communications provider Eutelsat Group (EURONEXT:ETL) announced Tuesday a €828 million reserved capital increase as the first step in its comprehensive financing strategy, with five investors participating in the equity raise.
The French State will be the largest contributor with a €551 million investment, followed by CMA CGM Participations (€100 million), the UK Government (€90 million), Le Fonds Stratégique de Participations (€57 million), and Bharti Space Limited (€30 million).
Following the transaction, the French State will hold 29.65% of Eutelsat's capital and voting rights, while Bharti Space Limited will hold 17.88%, the UK Government 10.89%, CMA CGM Participations 7.46%, and FSP 4.99%.
Settlement of the reserved capital increase is expected in the coming days, with shares priced at €4.00 each.
Eutelsat also confirmed plans for a subsequent €672 million rights issue by the end of 2025, for which the same investors have committed to take up their full rights, representing over 70% of the planned offering.
The company stated these capital increases, along with a debt refinancing plan and the planned disposal of its passive ground segment in the second half of fiscal year 2025-26, aim to enhance financial flexibility while supporting investments in Low Earth Orbit capabilities and the future IRIS² constellation.
Eutelsat anticipates its net debt to adjusted EBITDA ratio will reach approximately 2.5x by the end of FY 2025-26 following these transactions.
The company reaffirmed its financial outlook for FY 2025-26, targeting revenues in line with the previous fiscal year and an adjusted EBITDA margin slightly below that of FY 2024-25, with LEO revenues expected to grow by 50% year-on-year.
According to the press release statement, Eutelsat's Board of Directors approved the launch of the reserved capital increase in accordance with resolutions voted at the General Shareholders' Meeting held on September 30, 2025.
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