OneWeb, the UK satellite company bailed out by UK taxpayers, has agreed to merge with French rival Eutelsat to create a “global player” in space-based internet connectivity.
It was announced that the all-share combination would value OneWeb at $3.4bn (£2.8bn) – structured as an exchange of OneWeb shares by its shareholders, including the UK government, for new shares , issued by Eutelsat.
The Department for Business, Energy and Industrial Strategy (BEIS) said it meant the taxpayer would now have a “significant stake in what will become a single, powerful, global space company.”
It was saved from bankruptcy proceedings in the US by a £400million bailout at the height of the COVID pandemic.
OneWeb was seen as one critical investments in communications then headed by Boris Johnson on the advice of his then senior adviser Dominic Cummings.
The deal – subject to national security clearances – will result in OneWeb’s headquarters remaining in the UK while Eutelsat, which is listed on the French Stock Exchange, seeks listing on the London Stock Exchange.
The partially nationalized OneWeb docks with the French satellite competitor Eutelsat | business news
Source link The partially nationalized OneWeb docks with the French satellite competitor Eutelsat | business news