Eutelsat Secures Major State Investment Through Oversubscribed Share Sale

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The French satellite operator Eutelsat has successfully concluded a substantial capital increase, raising €670 million to fund its strategic pivot. The offering attracted significantly more demand than supply, with state-backed investors from France and the United Kingdom notably expanding their holdings. This move is central to financing the company's expansion into low Earth orbit (LEO) satellites and its role in the European IRIS² constellation, placing its ambitious transformation plan in the spotlight.

The rights issue was met with considerable enthusiasm from the market. Total demand reached approximately €891.6 million against an offer volume of €669.8 million, representing an oversubscription rate of about 133%.

Key details of the transaction are as follows:

• A total of 496,129,728 new shares will be issued.
• The subscription price was set at €1.35 per share (€1.00 nominal value plus a €0.35 premium).
• An overwhelming 96% of the new shares were subscribed for on an unreduced basis.
• Trading of the new shares on Euronext Paris is scheduled to commence on December 16, 2025.
• Their listing on the London Stock Exchange is planned for the following day, December 17, 2025.

This robust oversubscription highlights a strong willingness, particularly among institutional investors, to commit fresh capital to the company's strategy.

Shareholder Shift Toward State Ownership

This capital raise forms part of a broader €1.5 billion financing package. Its completion triggers a notable shift in Eutelsat's ownership structure toward state and state-affiliated entities.

The French state, investing approximately €749 million through the APE agency, emerges as the lead actor. With a resulting stake of 29.65%, France becomes the largest single shareholder. Bharti Space follows, taking a 17.88% share after a €150 million investment.

The United Kingdom has also significantly increased its involvement. The British government invested €163 million, securing a 10.89% ownership interest.

Other major participants in the capital increase include:

• CMA CGM Participations: €150 million (7.46%)
• Fonds Stratégique de Participations: €91 million (4.99%)

Following the transaction, Eutelsat's share capital will rise to €1,178,308,106, divided into an equal number of shares. The free float will decrease to 29.13%, a change that may influence the stock's liquidity over the medium term.

Capital Directed Toward Strategic Satellite Projects

The newly raised funds are primarily earmarked to accelerate the build-out of LEO satellite capacity and the future IRIS² constellation. Company management has estimated an investment requirement of roughly €4 billion for the period spanning 2026 to 2029.

Chief Executive Jean-François Fallacher emphasized that this transaction substantially strengthens the group's financial structure. It simultaneously enables the expansion of LEO activities and facilitates a reduction in net debt.

Debt Reduction and Shareholder Lock-Up

The comprehensive €1.5 billion financing package combines the equity raise with bond issuances, export credit financing, and extended bank facilities. The objective is to lower the leverage ratio to approximately 2.5x by the close of the 2025/26 financial year.

All major shareholders have agreed to a 180-day lock-up period. This commitment means no substantial share sales from these core investors are expected before mid-2026, providing additional stability to the ownership base.

Conclusion: A Vote of Confidence with Clear Objectives

The heavily oversubscribed share sale, the decisive entry of the French state and other large investors, and the clearly articulated investment program collectively signal strong market confidence in Eutelsat's transformation roadmap. The long-term success of this strategy will ultimately depend on the timely execution of the planned LEO expansion and participation in the IRIS² project, enabling the company to achieve competitiveness against rivals such as SpaceX's Starlink.