Satellite operator Eutelsat expects to spin off its €790m ground network operations with EQT’s fourth global infrastructure fund acquiring an 80% stake in the new business.
The EQT Infrastructure VI fund has agreed talks to buy the majority stake in Satellite Ground Station Infrastructure Business which operates a global network of 1,400 antennas across 100-plus locations.
The new, standalone company is being formed by bringing together Eutelsat’s passive assets including land, buildings and network infrastructure.
Eutelsat will retain a 20% stake as a long-term shareholder and key customer of the new company.
Carl Sjölund, partner within the EQT value-add infrastructure advisory team, said: “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.”
EQT said the EQT Infrastructure VI is expected to be 45-50% invested following this transaction. As previously reported, EQT has set a €20bn fundraising target for the latest infrastructure fund.
Eva Berneke, CEO of Eutelsat, said: “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.”
The latest agreement follows Eutelsat’s May announcement that it was exploring strategic options for its ground network, including potential partnerships with external infrastructure investors.
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