Eutelsat Halts the Sale of Its Ground Infrastructure to EQT
Eutelsat announces the failure of the transaction to sell its passive ground segment infrastructure to EQT Infrastructure VI, as not all suspensive conditions were met. This decision leads to an upward revision of the group's net debt to EBITDA ratio.
Cancellation of Sale Operation
Eutelsat has decided to abandon the sale of its passive ground segment infrastructure to the investment fund EQT Infrastructure VI. The transaction could not be completed as not all the suspensive conditions were fulfilled. This sale would have generated a net income of approximately 550 million euros for Eutelsat. A service contract would have been concluded with the potential buyer, with an annualized negative impact on adjusted EBITDA estimated at 75-80 million euros.
Impact on Financial Objectives
The failure of the transaction does not affect Eutelsat's financial targets for the fiscal year 2025-2026, except for the net debt to EBITDA ratio, which is now expected to be around 2.7 times at the end of the fiscal year (previously 2.5 times). The EBITDA margin for the fiscal year 2028-2029 is now expected to be around 65% (previously about 60%). Eutelsat states that the failure of this transaction does not compromise its ability to finance the investment expenditures necessary for its growth strategy.
Lack of Details on Unmet Conditions
The press release does not specify the particular reasons why the suspensive conditions were not met.
