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Eutelsat shares rise 6% following France's capital boost

Eutelsat's shares opened Friday up 6% after the French Government announced that it will become the company's largest shareholder, following a capital increase of 1.35 billion euros ($1.55 billion).

The French Finance Ministry said that the move will help the company compete with Elon Musk’s Starlink, which has the second largest constellation of satellites in low-Earth-orbit.

In a Friday morning post on X, French President Emmanuel Macron said: "By strengthening Eutelsat's capital, France secures its strategic independence, and paves the way for Europe."

Eutelsat announced that other major shareholders would subscribe to the capital raise. However, it is unclear whether Britain, which owns 10.9% of the firm, will inject additional money.

Eutelsat

OneWeb has merged with OneWeb

OneWeb launched its second generation LEO satellites by the end of the decade.

Eutelsat, however, has said that it needs to finance up to 2.2 billion euro in order for them have more satellites than they originally thought. ($1 = $0.8686 euros)

(source: Reuters)