Bharti Global to pump in $500 million in satellite communication firm OneWeb

Bharti Global said on Tuesday that it will invest $500 million into global low Earth orbit satellite communications company OneWeb. The company was rescued from bankruptcy last year by Bharti and the UK government. “OneWeb has completed its transformation with the exercise of a Call Option by Bharti to invest an additional $500m into the company,” stated the company.

The Call Option is expected to be completed in the second half of 2021, stated the company, subject to regulatory approvals. “On completion of the Call Option and with Eutelsat’s $550m investment, Bharti will hold 38.6 per cent. The UK Government, Eutelsat, and Softbank will each own 19.3 per cent,” said the company.

This round of fundraising has brought the total funding of the company to $2.4 billion. “The final shareholding structure may alter to the extent a member of the shareholders’ group chooses to exercise a part of this call option. On completion, OneWeb will have secured $2.4bn of equity investment, with no issued debt,” stated the company.

Sunil Bharti Mittal, Chairman of Bharti Enterprises and Executive Chairman of OneWeb said, “OneWeb represents 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. Nation states can accelerate their universal service obligations, Telcos, their backhaul, and Enterprise/Governments can serve remote installations.”

Kwasi Kwarteng, UK MP, Secretary of State, BEIS said that Bharti’s $500 million investment in OneWeb is yet another vote of confidence in the company from the market. ‘It’s clear that investors see a strong future for this incredible, cutting-edge company and a robust commercial case for investment,” he said.

Neil Masterson, CEO of OneWeb, said that the company has a significantly lower entry cost of any LEO and that with the forthcoming launch they will complete 40 per cent of their network. With 10 more launches, they will be able to deliver global coverage, he said.

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