France halted Eutelsat's sale of ground antennas, Finance Minister says

Core Viewpoint - The French government has blocked Eutelsat's sale of its ground antennas due to national security concerns, emphasizing the strategic importance of the company as the main European competitor to Starlink [1][2]. Group 1: Sale Blockage - The French Finance Minister Roland Lescure stated that the antennas are critical for both civilian and military communications, leading to the decision to block the sale [1]. - Eutelsat's shares fell by 5% following the announcement of the blocked sale [2]. - The planned sale to Swedish private equity firm EQT was expected to generate net proceeds of approximately 550 million euros ($656 million) [3]. Group 2: Financial Implications - Despite the blocked sale, Eutelsat anticipates a 5% increase in profit margins over the next three years due to savings from no longer leasing the antennas [3]. - The company has a significant contract with the French army, valued at 1 billion euros, for satellite services [4]. Group 3: Government Involvement - The French government holds a 29.6% stake in Eutelsat, making it the largest shareholder [2]. - The state will retain its "golden share" in the company, ensuring continued influence over strategic decisions [5]. - Efforts to find a French or European buyer for the defense firm LMB Aerospace were unsuccessful, indicating challenges in securing domestic investments [5].