AAA Hanwha Systems to hand $300m to OneWeb

Hanwha Systems to hand $300m to OneWeb

Hanwha Systems, an intelligent technology subsidiary of conglomerate Hanwha, agreed yesterday to pay $300m to acquire an 8.8% stake in UK-headquartered satellite internet services provider OneWeb.

The deal is set to close in early 2022, conditional on regulatory approvals, after which OneWeb will name a board director to represent Hanwha. The investment will lift OneWeb’s overall equity funding to $2.7bn since it emerged from bankruptcy in November 2020.

Founded in 2012, OneWeb is building a network of some 650 low Earth orbit (LEO) satellites to provide high-speed internet connection, scheduled to complete global coverage in 2022. It has 254 satellites in orbit and intends to launch another from Baikonur, Kazakhstan this month.

The company had applied for insolvency in March 2020 after it was unable to raise additional funding due to the impact of the covid-19 public health crisis.

Conglomerate Bharti Enterprises and the UK government invested $1bn in OneWeb in July 2020, before the corporate increased its stake to 38.6% through a $500m call option agreed in June this year.

Telecommunications and internet conglomerate SoftBank had already paid $350m for a 30% stake in the company in January this year, when satellite service Hughes Network Systems injected $50m.

Satellite operator Eutelsat Communications agreed in April 2021 to provide $550m for the company in return for a 24% stake. After Bharti’s call option is completed later this year, Eutelsat, SoftBank and the UK Government will each own a 19.3% share of OneWeb.

OneWeb had raised $3.4bn of funding before its bankruptcy filing, from backers including Bharti, Eutelsat, Hughes Network Systems, SoftBank Vision Fund, conglomerates Grupo Salinas and Virgin Group, beverage producer Coca-Cola, aerospace group Airbus and mobile chipmaker Qualcomm.

By Edison Fu

Edison Fu is a reporter and Asia liaison at Global Corporate Venturing.