Time is Running Out for Eutelsat Shareholders

Eutelsat FR0010221234

Shareholders of French satellite operator Eutelsat are facing a critical deadline. The company's ongoing capital increase has entered its final stage, requiring immediate action from investors who still hold subscription rights in their portfolios. Inaction at this juncture will result in a direct financial loss.

The trading window for these subscription rights closed last Friday. This leaves shareholders with only two options: exercise the rights to purchase new shares or allow them to expire worthless. Given the current market price, a swift decision is essential to avoid destroying capital.

Key details of the offering:
* Final Deadline: Instructions to exercise must be given by Tuesday, December 9, 2025.
* Subscription Price: New shares are priced at €1.35.
* Market Comparison: Eutelsat shares closed the week at €2.12.

With the market price trading more than 50% above the subscription price, allowing the rights to lapse would equate to throwing money away.

SoftBank's Move Creates Market Waves

Recent share price volatility has been largely attributed to actions by major shareholder SoftBank. The Japanese conglomerate sold a large block of subscription rights onto the market, which temporarily pressured the stock. Market observers interpret this move as a signal that SoftBank may not intend to fully participate in the capital increase to maintain its proportional stake. However, institutional investors quickly absorbed the supply, leading to a price recovery by the weekend.

The capital raised is urgently needed by Eutelsat to fund the expansion of its OneWeb division. To compete effectively with rivals like Starlink and Amazon's Project Kuiper, the company must finance its next-generation Low Earth Orbit (LEO) satellite constellation while also working to reduce its debt load.

The window for action closes irrevocably on Tuesday. Investors must proactively instruct their bank or broker by this date to secure the new shares at the preferential price. Following the expected crediting of new shares on December 16, the market will test whether the €2 level can be sustained under the weight of the additional shares entering circulation.