Satellite operator Eutelsat plans to spin off its €790 million ground network operations. EQT’s fourth global infrastructure fund is acquiring an 80% stake in the new company.
The EQT Infrastructure VI fund has agreed to talks to acquire a majority stake in Satellite Ground Station Infrastructure Business, which operates a global network of 1,400 antennas at over 100 locations.
The new, independent company will be created by combining Eutelsat’s passive assets, including land, buildings and network infrastructure.
Eutelsat will retain a 20 percent stake as a long-term shareholder and major customer of the new company.
Carl Sjölund, Partner in EQT’s Value Added Infrastructure Advisory team, said: “At EQT, we recognized satellite ground stations as an attractive digital infrastructure vertical several years ago.
“They play an important role in ensuring global connectivity, especially for those not covered by fixed and mobile connectivity solutions, and require extensive global expertise in the development and operation of telecommunications infrastructure companies.”
EQT said that EQT Infrastructure VI is expected to be 45-50% invested following this transaction. As previously reported, EQT has set a capital raising target of €20 billion for its latest infrastructure fund.
Eva Berneke, CEO of Eutelsat, said: “This transaction would be a win-win for all parties and would enable Eutelsat to strengthen its financial profile while continuing to rely on the unparalleled quality and reliability of its ground infrastructure.
“In addition, we are confident that with EQT’s support, the company will be able to fully exploit the opportunities presented by becoming the new global leader in this dynamic sector.”
The latest agreement follows Eutelsat’s announcement in May that the company was exploring strategic options for its ground network, including possible partnerships with external infrastructure investors.
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