Bharti, UK govt win bid for Oneweb

BHARTI GLOBAL AND THE UK GOVERNMENT WILL INVEST $500 MILLION IN EQUITY IN ONEWEB

NEWDELHI: Telecom tycoon Sunil Mittal’s Bharti Enterprises Ltd and the UK government jointly won satellite operator Oneweb in a bankruptcy auction in New York, helping the company complete its satellite deployments and bring wireless internet to remote areas across the world.

Bharti Global, the foreign arm of Bharti Enterprises, and the UK government will invest $500 million in equity in Oneweb, which filed for bankruptcy protection in March, statements by Bharti Enterprises and the UK government said. The two investors will hold 45% each in the company post the transaction with existing shareholders holding the rest, Bloomberg reported, citing people it did not identify.

Oneweb, which operates 74 satellites in the low-earth orbit, had planned to launch 550 more by the end of 2021. It filed for Chapter 11 bankruptcy protection after failing to secure $2 billion financing from lead shareholder Softbank Group. The company has the second largest low-earth orbit satellite broadband network, which makes it a direct rival to Elon Musk’s Starlink that has more than 500 in operation and plans at least 50 more.

Bharti will provide the company with “commercial and operational leadership,” while the UK government will have a say over any future sale of the company and will decide what countries can access Londonbased Oneweb’s technology on national security grounds, the bidders said. The transaction is subject to US court approval, and is expected to close before the end of the year.

“The deal will enable Oneweb to complete the construction of a global satellite constellation that will provide enhanced broadband and other services to mobile and fixed terminals in countries around the world,” a Bharti Enterprises statement said.