Radical move by satellite group echoes the great tower divestment by telcos – EQT Infrastructure VI fund is satco’s potential investor
We are potentially seeing the trend of telcos selling off their passive infrastructure in the satellite sector. Eutelsat Group has signed an exclusive option agreement with the EQT Infrastructure VI fund (EQT) regarding its passive ground infrastructure assets.
The proposed transaction would involve Eutelsat carving out its passive assets (land, buildings, support infrastructure, antennas and connectivity circuits for the combined portfolio of teleports and satellite network portals) into a separate unit.
It would be incorporated as a standalone legal entity. EQT and own 80% of the capital. Eutelsat Group would remain a long-term shareholder, anchor tenant and partner of the new company. EQT would hold the outstanding 20%.
Eutelsat claims that if the move goes ahead, the new entity would be “the world’s largest pure-play, operator-neutral, ground station- as-a-service company, bringing together top-level teams combining satellite-specific knowledge with highly experienced infrastructure service operators for optimum customer service”.
Long-term play
Assuming the transaction is completed, Eutelsat would enter into a long-term framework master service agreement (MSA) covering services to be rendered by the new company to Eutelsat Group. The MSA would assure the seamless continuity of Eutelsat’s activities “at the same high level of efficiency, reliability and security”.
The proposed transaction values the new entity at an enterprise value of €790 million and shift future maintenance capex to the new entity. The proceeds would enable Eutelsat to strengthen its financial profile and focus on the next generation of its multi-orbit fleet.
Eva Berneke, Chief Executive Officer of Eutelsat Group, said, “We are proud to become the first satellite operator to embark on this innovative transaction which would allow us to build on the model adopted in other industries, and to optimise the value of our extensive ground network.
“In EQT we have found a partner of the highest quality, who shares our vision. This transaction would represent a win-win situation for all parties, and would enable Eutelsat to strengthen its financial profile, whilst continuing to rely on the unparalleled quality and reliability of its ground infrastructure. Moreover, we are confident that with the backing of EQT, the business would be in a position to fully embrace the opportunities opening up to it as the new Global leader in this dynamic sector.
Carl Sjölund, Partner within the EQT Value-Add Infrastructure advisory team, added: “At EQT, we identified 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 deep global expertise in developing and operating telecommunications infrastructure businesses. We are delighted to partner with Eutelsat Group to create a ground station leader and capture the growth opportunity fuelled by technological innovation.”
The transaction is subject to customary conditions and approvals by the relevant regulatory authorities as well as consultation with French security authorities and the appropriate employee representative bodies. Closing of the deal is expected in the first quarter of calendar year 2026.
Photo courtesy of Eutelsat, showing ground station at Turin, Italy.