Eutelsat’s shares jumped 31% on Friday after the European satellite operator announced a €1.35 billion capital raise led by the French state and backed by other investors. The company plans to use the funds for its investment in Low Earth Orbit (LEO) capabilities, which support business-to-business and government operations.
The French state will become Eutelsat’s largest shareholder, holding 29.99% of capital and voting rights. This move comes as the company seeks to establish itself as a European alternative to Elon Musk’s Starlink. Shares have been volatile this year, but the recent raise has boosted investor confidence.
Eutelsat recently secured a 10-year deal with the French armed forces for priority-access space resources on its OneWeb LEO satellite constellation. The company’s shares have risen 69% year-to-date, driven by expectations of strategic independence and support for European Union objectives.
French President Emmanuel Macron expressed his support for the move, stating that it would “ensure France’s strategic independence” and “pave the way for Europe’s” interests. This development follows rumors that Eutelsat was in contention to replace Starlink in Ukraine, but tensions have since cooled between the US and Ukraine.
Source: https://www.cnbc.com/2025/06/20/satellite-operator-eutelsat-pops-as-france-backs-capital-raise.html