French Government Becomes Leading Shareholder in Eutelsat’s €1.5 Billion Equity Raise

Eutelsat FR0010221234

Eutelsat has successfully concluded a major €1.5 billion capital increase, a move that fundamentally reshapes its shareholder register and provides substantial funding for its strategic satellite initiatives. The transaction sees the French state emerge as the single largest shareholder, marking a significant shift in the company's ownership dynamics.

A central outcome of the fundraising is the enhanced role of the French government. Through the APE agency, the state invested €749 million, securing a 29.65% ownership stake. This position establishes it as Eutelsat's primary anchor investor. Other key shareholders also reinforced their commitments: the British government invested €163 million, while both CMA CGM and India's Bharti contributed €150 million each.

The revised shareholder structure is now as follows:
* French State (APE): 29.65%
* Bharti Space Ltd: 17.88%
* British Government: 10.89%
* CMA CGM Participations: 7.46%
* Fonds Stratégique de Participations: 4.99%
* Public Float: 29.13%

Strong Investor Demand for Rights Issue

The capital increase comprised two primary components: a rights issue of approximately €670 million and reserved capital increases totaling €828 million, which were finalized on November 21. Investor appetite for the rights offering was robust, with a subscription rate of 133%. Orders worth about €891.6 million were placed against the €669.8 million on offer.

Key details of the transaction include:
* Total capital raised: €1.5 billion
* Number of new shares issued: 496,129,728
* Subscription price per share: €1.35
* New share capital: €1,178,308,106
* Start of trading for new shares: December 16, 2025 (Euronext Paris), December 17, 2025 (London Stock Exchange)

Funding Ambitious Satellite Projects and Reducing Leverage

The freshly raised capital is earmarked to accelerate Eutelsat's growth in the Low Earth Orbit (LEO) segment and to secure its role in the European IRIS² satellite constellation. Management has outlined an investment plan of roughly €4 billion for the period spanning 2026 to 2029.

This equity raise is part of a broader refinancing package that also involves bond issuances, export credit financing, and extended bank facilities. A key objective is to reduce the company's net debt to approximately 2.5x EBITDA by the close of the 2025/26 fiscal year.

Lock-Up Agreements and Dilution Impact

To promote market stability, all major shareholders have entered into a 180-day lock-up period following the settlement of the capital increase. This agreement prevents large-scale share disposals by these investors until mid-2026, aiming to avoid near-term price pressure from substantial placements.

However, the scale of the equity issuance has a pronounced dilutive effect on existing shareholders. The public float is reduced to 29.13%, which may influence the stock's trading liquidity. Market reaction on Friday reflected this, with clear share price declines illustrating the immediate impact of the dilution.

The company's future trajectory will hinge on its ability to execute the planned LEO and IRIS² investments and to meet its stated leverage target by the end of FY 2025/26.