REG-Eutelsat Group Eutelsat Group Enters Into Exclusive Negotiations for the Carve-out and Partial Sale of Its Passive Ground Segment Infrastructure Assets

Eutelsat Communications SAAnnouncement

09/08/2024 16:45

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Eutelsat Group Enters Into Exclusive Negotiations for the Carve-out and
Partial Sale of Its Passive Ground Segment Infrastructure Assets

 

Eutelsat Group (ISIN: FR0010221234 - Euronext Paris / London Stock Exchange:
ETL) has entered into exclusivity and signed a put option agreement with the
EQT Infrastructure VI fund (“EQT”) with respect to its passive ground
infrastructure assets.

The contemplated transaction would consist in the carve-out of the passive
assets (land, buildings, support infrastructure, antennas and connectivity
circuits for the combined portfolio of teleports and SNPs) to form a new
company which would be incorporated as a standalone legal entity. EQT will own
80% of the capital, while Eutelsat Group will remain committed as long-term
shareholder, anchor tenant and partner of the new company with a 20% holding
alongside EQT.

The new entity would be the world’s largest pure-play, operator-neutral,
ground station- as-a-service company, bringing together top-level teams
combining satellite-specific knowledge with highly experienced infrastructure
service operators for optimum customer service.

On completion of the transaction, Eutelsat would enter into a long-term
framework master service agreement (MSA) covering services to be rendered by
the new company to Eutelsat Group. The MSA would assure the seamless
continuity of Eutelsat’s activities at the same high level of efficiency,
reliability and security.

The contemplated transaction values the new entity at an enterprise value of
€790m, representing attractive EBITDA-Capex and EV/EBITDA multiples. It
would shift future maintenance capex to the new entity, while the proceeds
would enable Eutelsat to strengthen its financial profile and focus on the
next generation of its multi orbit -fleet.

Eva Berneke, Chief Executive Officer of Eutelsat Group, said, “We are proud
to become the first satellite operator to embark on this innovative
transaction which would allow us to build on the model adopted in other
industries, and to optimise the value of our extensive ground network. In EQT
we have found a partner of the highest quality, who shares our vision. This
transaction would represent a win-win situation for all parties, and would
enable Eutelsat to strengthen its financial profile, whilst continuing to rely
on the unparalleled quality and reliability of its ground infrastructure.
Moreover, we are confident that with the backing of EQT, the business would be
in a position to fully embrace the opportunities opening up to it as the new
Global leader in this dynamic sector.

Carl Sjölund, Partner within the EQT Value-Add Infrastructure advisory team,
added: “At EQT, we identified satellite ground stations as an attractive
digital infrastructure vertical several years ago. They play an important role
in ensuring global connectivity, especially for those not covered by fixed and
mobile connectivity solutions and require deep global expertise in developing
and operating telecommunications infrastructure businesses. We are delighted
to partner with Eutelsat Group to create a ground station leader and capture
the growth opportunity fuelled by technological innovation.”

The transaction remains subject to customary conditions precedent, in
particular the approval by the relevant regulatory authorities as well as
consultation with French security authorities and the appropriate employee
representative bodies. Closing of the deal is expected in the first quarter of
calendar year 2026.

About Eutelsat Group

Eutelsat Group is a global leader in satellite communications, delivering
connectivity and broadcast services worldwide. The Group was formed through
the combination of the Company and OneWeb in 2023, becoming the first fully
integrated GEO-LEO satellite operator with a fleet of 36 Geostationary
satellites and a Low Earth Orbit (LEO) constellation of more than 600
satellites. The Group addresses the needs of customers in four key verticals
of Video, where it distributes more than 6,500 television channels, and the
high-growth connectivity markets of Mobile Connectivity, Fixed Connectivity,
and Government Services. Eutelsat Group’s unique suite of in-orbit assets
enables it to deliver integrated solutions to meet the needs of global
customers. The Company is headquartered in Paris and the Eutelsat Group
employs more than 1,700 people across more than 50 countries. The Group is
committed to delivering safe, resilient, and environmentally sustainable
connectivity to help bridge the digital divide. The Company is listed on the
Euronext Paris Stock Exchange (ticker: ETL) and the London Stock Exchange
(ticker: ETL). Find out more at www.eutelsat.com
(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.eutelsat.com&esheet=54107171&newsitemid=20240809270618&lan=en-US&anchor=www.eutelsat.com&index=1&md5=e9489e2f9198b6f2ae9397033acc563e)

DISCLAIMER

The forward-looking statements included herein are for illustrative purposes
only and are based on management’s views and assumptions as of the date of
this document. Such forward-looking statements involve known and unknown
risks. For illustrative purposes only, such risks include but are not limited
to: risks related to the health crisis; operational risks related to satellite
failures or impaired satellite performance, or failure to roll out the
deployment plan as planned and within the expected timeframe; risks related to
the trend in the satellite telecommunications market resulting from increased
competition or technological changes affecting the market; risks related to
the international dimension of the Group's customers and activities; risks
related to the adoption of international rules on frequency coordination and
financial risks related, inter alia, to the financial guarantee granted to the
Intergovernmental Organization's closed pension fund, and foreign exchange
risk. Eutelsat Communications expressly disclaims any obligation or
undertaking to update or revise any projections, forecasts or estimates
contained in this document to reflect any change in events, conditions,
assumptions, or circumstances on which any such statements are based, unless
so required by applicable law. The information contained in this document is
not based on historical fact and should not be construed as a guarantee that
the facts or data mentioned will occur. This information is based on data,
assumptions and estimates that the Group considers as reasonable. The
information contained within this announcement is deemed to constitute inside
information as stipulated under Article 7 of EU Regulation 596/2014 (which
also forms part of domestic UK law pursuant to the European Union (Withdrawal)
Act 2018). Upon the publication of this announcement, this inside information
is now considered to be in the public domain.

Media enquiries 

Joanna Darlington

Tel. +33 674 521 531

jdarlington@eutelsat.com (mailto:jdarlington@eutelsat.com)

Anita Baltagi

Tel. +33 643 930 178

abaltagi@eutelsat.com (mailto:abaltagi@eutelsat.com)

Katie Dowd

Tel. +1 202 271 2209

kdowd@oneweb.net (mailto:kdowd@oneweb.net)

Investors 

Joanna Darlington

Tel. +33 674 521 531

jdarlington@eutelsat.com (mailto:jdarlington@eutelsat.com)

Hugo Laurens-Berge

Tel. +33 670 80 95 58

hlaurensberge@eutelsat.com (mailto:hlaurensberge@eutelsat.com)



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