Bharti Global Funded Additional of $550M in OneWeb
On the anniversary of the successful bid by the UK Government and Bharti Global to acquire OneWeb from US Chapter 11, the popular Low Earth Orbit or LEO satellite communications business revealed on Tuesday that it had obtained more money, pushing its total investment to a record $2.4 billion.
Bharti’s use of a Call Option to invest an extra $500 million in OneWeb has brought the company’s transition to a close.
OneWeb is gearing up for its eighth launch on July 1st, and the news arrives just in time. In the second half of 2021, the Call Option is also expected to be finished. Following the fulfillment of the Call Option and Eutelsat’s earlier $550 million investment, Bharti will own 38.6% of the company, while Softbank and Eutelsat will each own roughly 19.3%.
The final ownership structure may change depending on the degree to which a shareholder chooses to use his or her rights. OneWeb will have received $2.4 billion in equity investment, with no issued debt, upon conclusion of the transaction.
Mr Sunil Bharti Mittal, OneWeb’s Executive Chairman, stated that OneWeb offered investors a once-in-a-lifetime opportunity at a critical juncture in the commercialization of space.
OneWeb is more than ready to address the essential requirements of high-speed internet access for people who have been left behind, with its global ITU LEO Spectrum priority, Telco alliances, and successful launch momentum, replete with dependable satellites.
Bharti Global’s MD, Shravin Mittal, adding that by exercising the Call Option with the backing of fellow shareholders, Bharti was happy to express its faith in OneWeb’s quick development. Together, the firms have changed OneWeb in less than a year and throughout a worldwide epidemic, restoring the operation to full-scale. Bharti completes the financial criteria with this round of investment.
To take advantage of this once-in-a-lifetime opportunity, the firm will continue to collaborate with its partner shareholders, including the UK government, Softbank, and Eutelsat.
To top it off, Neil Masterson, OneWeb’s CEO, stated that the company’s fundraising is complete, putting it in a strong position. Compared to other LEOs, the company has a far cheaper entrance fee. It also benefits from the original investors’ $3.4 billion pre-Chapter 11 investment, making the new OneWeb three times less expensive than Constellation. The company will have finished 40% of its network with the next launch. It is laser-focused on execution, and it will be able to provide worldwide coverage in only 10 more launches.