Eutelsat
Note: This is a daily stock update and the information stands true as of 20/06/25, 09:00 CET.
Company Update:
Expert Opinion:
This demonstrates that Eutelsat is a key asset for the French government. This capital increase of €4 sends a very strong signal. While the operational recovery at Eutelsat will take some time and the level of capex required to build and maintain the One Web constellation is huge, the commitment of the French state is key. There is massive value in that company, at least in the eye of the government. While our fair value stands at €4 prior to that capital increase, our expert suspects we will increase our target price due to the uniqueness of the asset, now that the residual risk on the name is much lowered. We will see where the market opens (He expects substantially higher but not quite at €4). Theoretical value of the right is 0 obviously so this one is a bit weird. In any case, the support of the French governement means the risk of banruptcy is now close to zero. He has no expertise in debt but he believes the impact on the debt of Eutelsat should be huge as well. Please book a call with our analyst in Paris to discuss the intricacies of the case.
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Company Update:
Eutelsat announced that it is planning to raise €1.35 billion of capital by way of
(i) a reserved capital increase of €716 million at a price per share of €4 corresponding to a +32% premium to the 30-day average price of the shares which would be subscribed by the French State via the Agence des Participations de l'Etat ("APE"), Bharti Space Limited, CMA CGM, and Le Fonds Stratégique de Participations ("FSP"), and
(ii) a rights issue of €634 million.
(i) a reserved capital increase of €716 million at a price per share of €4 corresponding to a +32% premium to the 30-day average price of the shares which would be subscribed by the French State via the Agence des Participations de l'Etat ("APE"), Bharti Space Limited, CMA CGM, and Le Fonds Stratégique de Participations ("FSP"), and
(ii) a rights issue of €634 million.
The capital increase is expected to be completed by the end of 2025 at the latest and would be subscribed by the French State for €526.4 million, Bharti Space Limited for €31.4 million, CMA CGM for €100.4 million, and FSP for €57.8 million.
The company also provided a financial outlook for the first time, focusing on its government and mobility market, with revenue expected in the range of €1.5 and €1.7 billion by the end of FY 28-29 which is close to our own estimations.
'Going concern' for Eutelsat is behind now and the company can look for future development backed by this cash injection which will support its capex requirements for the OneWeb satellites renewal and infrastructure development for the IRIS^2 program. We stay positive for the stock.
This demonstrates that Eutelsat is a key asset for the French government. This capital increase of €4 sends a very strong signal. While the operational recovery at Eutelsat will take some time and the level of capex required to build and maintain the One Web constellation is huge, the commitment of the French state is key. There is massive value in that company, at least in the eye of the government. While our fair value stands at €4 prior to that capital increase, our expert suspects we will increase our target price due to the uniqueness of the asset, now that the residual risk on the name is much lowered. We will see where the market opens (He expects substantially higher but not quite at €4). Theoretical value of the right is 0 obviously so this one is a bit weird. In any case, the support of the French governement means the risk of banruptcy is now close to zero. He has no expertise in debt but he believes the impact on the debt of Eutelsat should be huge as well. Please book a call with our analyst in Paris to discuss the intricacies of the case.
For daily updates, subscribe to our newsletter and for detailed information, reach out to us at sales@alphavalue.eu
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