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UK government part of consortium buying OneWeb
Posted on Monday, 06 July 2020 13:17
A consortium of Her Majesty’s Government (HMG) through the UK Secretary of State for Business, Energy and Industrial Strategy and Bharti Global have committed to provide more than USD 1.00 billion to acquire OneWeb and fund the full restart of business operations.
The UK-headquartered communications company is being sold as part of a court-supervised sales process, after the group filed for bankruptcy protection in March.
OneWeb will now look to resume operations as soon as possible and continue with progress towards providing global high-speed, low latency connectivity via its state-of-the-art satellite constellation as it emerges from Chapter 11.
The bid is designed to capitalise the company sufficiently as a going concern to effectuate the full end-to-end deployment of the OneWeb system.
Completion is expected by the fourth quarter of 2020 and remains subject to creditor, bankruptcy court, regulatory and US court approvals.
OneWeb provides connectivity to governments, businesses and people around the world.
The consortium’s bid brings immediate commercial value to the company and with the roughly USD 500.00 million commitment from HMG accelerates and enhances the group’s global access.
OneWeb will contribute to the UK’s government’s ambition to join the first rank of space nations, along with making the country the world leader in science and research and development.
Bharti, through Bharti Airtel, is the third-largest mobile operator in the world, with over 425.00 million customers.
The group has its own extensive mobile broadband networks and enterprises business, which will act as the testing ground for all OneWeb products, services and applications.
Adrian Steckel, chief executive of the target, said: “We are delighted to have concluded the sale process with such a positive outcome that will benefit not only OneWeb’s existing creditors, but also our employees, vendors, commercial partners, and supporters worldwide who believe in the mission and in the promise of global connectivity.
“The combination of HMG and Bharti will bring immediate value as we develop as a global leader in low latency connectivity.”
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