Eutelsat’s Shareholder Rights Deadline Passes Amid Strategic Moves

Today marks a pivotal moment for Eutelsat as the subscription period for its €670 million capital increase closes. This second tranche of a broader €1.5 billion financing round reached its final deadline on December 9, 2025. Concurrently, the Franco-British satellite operator has fortified its long-term revenue streams by securing a five-year contract renewal with beIN Media Group. Trading at €2.04, the company's shares are at a critical juncture.

In a significant parallel development, Eutelsat announced an extended partnership with beIN Media Group. The new five-year agreement ensures the continued distribution of beIN's premium sports and news content via the 7/8° West orbital slot. This position provides coverage to an estimated 95% of television households across the MENA region, representing over 66 million homes.

beIN will maintain its use of Ku-band capacity on the Eutelsat 7 West A and Eutelsat 8 West B satellites. This renewal stabilizes a key business segment that accounted for nearly half of the group's revenue in the first quarter of the current fiscal year.

Capital Increase Nears Completion

Shareholders faced today's deadline to exercise their subscription rights at a price of €1.35 per new share. The subscription ratio was set at 11:8, meaning 11 rights entitled holders to 8 new shares. Any unexercised rights expired worthless after market close.

The offering's success appears assured, with core shareholders having already committed to 71% of the issue volume. Major investors, including the French state (via APE), Bharti Space, the British government, CMA CGM, and the Stratégique de Participations fund, provided binding commitments totaling €475 million. This tranche follows a first placement of €828 million on November 21, priced at €4.00 per share.

Eutelsat will disclose the final subscription results on December 12. Settlement and delivery of the new shares are scheduled for December 16, followed by their admission to trading on Euronext Paris and the London Stock Exchange.

Should investors sell immediately? Or is it worth buying Eutelsat?

Credit Profile Strengthened by Rating Upgrades

The company's financial maneuvers have received positive recognition from major rating agencies. Moody's upgraded Eutelsat's long-term corporate family rating from B2 to Ba3 on December 2. The agency cited its new status as a "Government-Related Issuer" following the French state's 29.65% stake acquisition, alongside anticipated improvements in leverage metrics.

Fitch followed suit on December 3, raising its rating to BB with a stable outlook. Both agencies project that the net debt-to-EBITDA ratio will decline from 3.9x at the close of fiscal 2025 to approximately 2.5x by the end of 2026. Proceeds from the capital raise are primarily allocated for debt reduction and funding expansion in the Low Earth Orbit (LEO) segment.

Management Reaffirms Operational Targets

Eutelsat's leadership has reiterated its guidance for the 2025-26 fiscal year. The company expects revenues to remain stable compared to the prior year, with a slightly lower adjusted EBITDA margin. Revenues from the LEO segment are projected to grow by 50%.

Looking further ahead, the group is targeting revenues between €1.5 billion and €1.7 billion for the 2028-29 fiscal year, with an EBITDA margin of at least 60%.

The equity has lost roughly 35% of its value since the start of the year. Significant dilution from the capital increase, coupled with SoftBank's sale of subscription rights in early December, has pressured the share price. With a Relative Strength Index (RSI) reading around 20, the stock is technically in deeply oversold territory. The market will gain full clarity on the offering's reception when the final results are published on December 12.

Key Developments at a Glance:
* Subscription rights expired today if not exercised.
* Core shareholders pre-committed to 71% of the €670 million offering.
* Contract extension secures access to an estimated 66 million TV households.
* Rating upgrades from Moody's and Fitch enhance the company's credit standing.