{"id":129936,"date":"2022-10-12T07:36:55","date_gmt":"2022-10-12T07:36:55","guid":{"rendered":"https:\/\/myfintale.com\/?p=129936"},"modified":"2022-10-12T07:36:55","modified_gmt":"2022-10-12T07:36:55","slug":"eutelsat-says-moving-to-full-combination-with-uks-oneweb","status":"publish","type":"post","link":"https:\/\/myfintale.com\/industries\/eutelsat-says-moving-to-full-combination-with-uks-oneweb\/","title":{"rendered":"Eutelsat Says Moving To Full Combination With UK’s OneWeb"},"content":{"rendered":"
French satellite operator Eutelsat Communications (ETL), which has signed a Memorandum of Understanding with British communications network OneWeb for a potential combination, Wednesday said it is moving to the next level in the deal, with a full combination.<\/p>\n
In July, Eutelsat and key OneWeb shareholders signed the MoU to combine the companies in an all-share deal, whereby the shareholders of each company will hold 50% of the Eutelsat shares.<\/p>\n
As a combined entity, OneWeb and Eutelsat will work together on the conception of OneWeb’s Gen 2 constellation, due to enter service by early 2028.<\/p>\n
In its strategy update on the proposed combination, Eutelsat said the combination will accelerate the commercialisation of OneWeb’s fleet as it enters the final stages of its global deployment.<\/p>\n
The combination will generate substantial value, tapping into significant revenue, cost, and capex synergies.<\/p>\n
Eutelsat projects average annual revenue synergies of around 150 million euros by year 4, thanks to the acceleration of OneWeb’s commercial ramp-up, among others.<\/p>\n
The combination will help to maximise capex savings through the early, joint design of OneWeb Gen 2 as part of a combined GEO\/LEO infrastructure, delivering significant savings compared to any potential LEO new entrant.<\/p>\n
As a follow-on constellation to Gen 1, Gen 2 is expected to benefit from the re-use of existing ground infrastructure, the know-how developed with Gen 1, and already secured priority filings, while also being designed as part of a broader GEO\/LEO structure rather than a standalone entity.<\/p>\n
The cost of Gen 2 will therefore be considerably lower than that of building a constellation from scratch.<\/p>\n
Eutelsat had made an initial investment in OneWeb in April 2021.<\/p>\n
The combined entity is expected to have revenues of around 1.2 billion euros for FY 2023. From this base, revenues are expected to grow at a double-digit revenue CAGR over the medium to long-term.<\/p>\n
EBITDA for the combined entity is expected to grow at a double digit CAGR over the same period, outpacing revenues growth.<\/p>\n
Eutelsat will suspend its dividend for the coming three fiscal years with cash flow focused on the deployment of the Gen 2 constellation while maintaining a strong balance sheet.<\/p>\n
Eva Berneke, CEO of Eutelsat, and Neil Masterson, CEO of OneWeb, said, “…we are confident that moving to the next level, with a full combination, will ensure the potential of the GEO\/LEO integration is fully realized, underpinned by compelling financial, strategic, and industrial logic.” <\/p>\n
Source: Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" French satellite operator Eutelsat Communications (ETL), which has signed a Memorandum of Understanding with British communications network OneWeb for a potential combination, Wednesday said it […]<\/a><\/p>\n<\/div>","protected":false},"author":3,"featured_media":129935,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"yoast_head":"\n