By Gianluca Lo Nostro
(Reuters)-Eutelsat fell clearly on the stock market Thursday after the South Korean group Hanwha Systems sold all of its 5.4% stake in the Franco-British Satellite operator, for 77.6 million euros.
In search of investors to finance the second generation of its Oneweb satellites in Low Orbit (LEO) and to fulfill its commitments within the framework of the Iris² project of the European Union, Eutelsat aroused unprecedented attention from governments this year, which are looking for alternatives to Starlink de Spacex for internet connectivity by satellite.
Hanwha’s actions were offered at 3.00 euros per unit, which represents a discount of 13.9% compared to the closing price of Eutelsat, which was 3.48 euros Wednesday, according to a sheet of conditions established by Citi, the book content.
On the Paris Stock Exchange Thursday, around 11:10 a.m. GMT, the Eutelsat action lost around 15.35% to 2.95 euros.
The price of placement of shares held by Hanwha is a loss of 74% compared to the initial investment of $ 300 million (262.84 million euros) carried out by the South Korean company in Oneweb in 2021, the participation being now valued at $ 85 million. Oneweb merged with Eutelsat in 2023.
Hanwha said that the sale was not motivated by an investment perspective but by a strategic refocusing on its main activities.
“This decision reflects a long -term strategy aimed at focusing on military satellites and defense communications, rather than civil satellite operations and services,” Hanwha said in a statement addressed to Reuters.
A representative of Hanwha had resigned from the Eutelsat board of directors in April.
In May, when the group’s results were published for its third quarter, Eutelsat’s financial director Christophe Caudrelier said the group was looking for new investors.
Eutelsat told Reuters on Thursday that no other shareholder had expressed the intention to sell his shares.
A spokesperson for the satellite operator refused to comment on press information that France could increase their participation in the group.
(Written by Gianluca Lo Nostro in Gdansk, Etienne Breban and Elena Smirnova, edited by Augustin Turpin and Blandine Hénault)
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