International satellite giants Inmarsat and Eutelsat are planning to ditch their current cooperative ownership structures and issue up to $3 billion in stock to additional investors.
According to a report carried by the Financial Times the two companies are valued at more $3 billion and a float would provide significant returns to British Telecommunications and US-based Comsat Corp.
BT has a 22 percent stake in Eutelsat and an eight percent stake in Inmarsat. Comsat holds a 23 percent stake in Inmarsat.
Management of two companies cite the need to raise additional funds for further expansion of satellite coverage by raise maximum borrowing limits and bringing in other shareholders from the private sector who could provide much needed alliances.
Eutelsat plans to launch five satellites this year at a cost of $750 million and doubling its capacity.
Geoff King, chairman of the Inmarsat shareholder council, said commercial satellite operators are taking a widening share of the market which until now was entirely dominated by cooperative groups such as Inmarsat, Eutelsat and Intelsat. “These organizations were designed in another age, and are too slow and bureaucratic to compete with private enterprise,” he said.
