OneWeb Receives Funding From Bharti Of Rs. 3,700 Crore

• ByStartupStory     |    June 30, 2021

OneWeb, a satellite company,  receives funding from Bharti of Rs. 3,700 crore  in addition to the investments it had already made so far in OneWeb, the low-earth orbit satellite communications company, it said in a statement on Tuesday. The investment will make Bharti the largest shareholder in OneWeb, which it had bid for and purchased in partnership with the UK government last year. Bharti made the investment in OneWeb by exercising its ‘call option’, and the deal is expected to be completed by the second half of 2021, the company said. Once the deal is complete, Bharti will hold a 38.6 per cent stake in the company, while the UK government, Eutelsat and SoftBank will each own 19.3 per cent. “OneWeb has completed its transformation with the exercise of a call option by Bharti to invest an additional $500 m into the company,” Bharti Airtel said in a statement. The investment is a result of a “call option” by Bharti. On completing the transaction and with Eutelsat’s $550-million investment, Bharti will hold 38.6 per cent.

The British government, Eutelsat, and SoftBank will each own 19.3 per cent, OneWeb said in a statement. “OneWeb, the global low-earth orbit (LEO) satellite communications company, has secured further fundraising on the anniversary of the successful bid by the UK government and Bharti Global (Bharti) to purchase OneWeb from US Chapter 11 to bring its funding to $2.4 billion,” OneWeb said in a statement. The transaction is expected to be completed in the second half of 2021, subject to a regulatory nod. The announcement comes as OneWeb gears up for its eighth launch on July 1, delivering much-anticipated and strategically valuable Arctic region coverage down to 50-degree latitude. The statement said the final shareholding structure could alter to the extent a member of the shareholders’ group chooses to exercise part of the call option. On completion, OneWeb will have secured $2.4 billion of equity investment, with no issued debt. OneWeb Executive Chairman Sunil Bharti Mittal said the company represented a “unique opportunity” for investors at a key moment in the commercialisation of space. “With its Global ITU LEO Spectrum priority, telco partnerships, successful launch momentum and reliable satellites, OneWeb is ready to serve the vital needs of high-speed broadband connectivity for those who have been left behind.

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