A little more than year after completing its initial public offering, Eutelsat is undergoing significant ownership changes as the satellite operator’s private equity holders sell their stakes.
Spanish industrial group Abertis and France’s state-owned financial institution Caisse des Dépôts et Consignations will become the two largest shareholders in Eutelsat. Abertis completed its acquisition of a total of 32 percent of the Eutelsat from multiple private equity firms in January, while Caisse des Dépôts et Consignations has announced plans to buy a 26 percent stake in Eutelsat from Eurazeo.
While private equity firms have developed a reputation for squeezing all potential profits from companies, sometimes at the expense of their long-term health, Eutelsat CEO Giuliano Berretta praised the private equity firms for their stewardship of the third largest Fixed Satellite Services (FSS) operator in the world.
“We knew that one day the PE (private equity) firms would relinquish their investment, but for as long as they accompanied us they performed their duties well as investors,” he says. “ People sometimes say that when you have PE firms behind you, your scope for investment is reduced, however, our track record over the last four years contradicts this. Since 2001, we have carried out 10 satellite launches; opened sales offices in Europe, America and Asia; acquired a teleport in France and created our Skylogic subsidiary, which I believe is now one of the world’s leading IP (Internet protocol) satellite platforms and certainly the leading platform in Europe.
“I believe that this company is so attractive that even cautious financial investors in their role as shareholders understood the importance of adding capacity for our business,” he says. “They accepted that a capital expenditure holiday is not the way to secure the future. I don’t think private equity firms have been negative for Eutelsat.”
Berretta discussed the impact the recent ownership changes might have on Eutelsat and assesses the satellite industry going into 2007 with Via Satellite Associate Editor Mark Holmes.
Via Satellite: What impact will the new ownership have on Eutelsat?
Berretta: I am extremely positive about the arrival of the Caisse des Dépôts, which brings stability to our shareholder base, and Abertis, who has a strong international reputation and a dynamic vision about the development of international infrastructure. We are very confident that we can find strong synergies working together.”
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