Eutelsat has committed additional cash to the LEO satellite internet technology developer, increasing its stake to 22.9% to become its second largest shareholder.
Satellite operator Eutelsat Communications exercised a call option today having agreed to pay $165m to hike its stake in UK-headquartered satellite internet service provider OneWeb from 17.6% to 22.9%.
The deal is set to close later this year and was part of the $500m call option agreed by conglomerate Bharti Enterprises in June this year. The terms were identical to a $550m round backed by Eutelsat two months before, and Eutelsat will be OneWeb’s second largest shareholder, after Bharti, which owns 30%.
OneWeb provides high-speed internet access through the launch of 650 low Earth orbit (LEO) satellites, helping users incorporate internet-of-things and 5G applications into their businesses or daily lives.
Hanwha Systems, a smart technology subsidiary of conglomerate Hanwha, agreed last month to acquire an 8.8% stake in OneWeb for $300m, a deal which will help lift the latter’s total funding to $2.7bn when it closes.
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