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South Korean tech firm Hanwha invests $300 mn in Bharti Airtel’s OneWeb for 8.8%

South Korean tech firm Hanwha invests $300 mn in Bharti Airtel’s OneWeb for 8.8%

On completion of the deal, OneWeb will appoint a board director to represent Hanwha’s share. The investment is expected to be completed in the first half of 2022

OneWeb receives $300 mn from Hanwha OneWeb receives $300 mn from Hanwha

South Korean global technology and manufacturing company Hanwha Systems will invest $300 million in Bharti Airtel and UK government-owned global communications network OneWeb for 8.8 per cent share. This investment brings OneWeb’s total equity investment since November 2020 to $2.7 billion with no debt issuance.

On completion of the deal, OneWeb will appoint a board director to represent Hanwha’s share. Hanwha will bring defence capabilities and latest antenna technologies to OneWeb, as well as relationships to new government customers and expanded geographical reach.

The investment is expected to be completed in the first half of 2022, subject to regulatory approvals.

Sunil Bharti Mittal, founder and Chairman of Bharti Enterprises, said, “These are exciting and fast paced times in the space sector. With Hanwha alongside, we will be able to access the highest quality of technological thinking and development. They are a powerful partner in our global mission to connect the world.”

The company aims to deliver global coverage in 2022 with its first generation fleet of 648 satellites. OneWeb has launched 254 satellites into orbit so far. Another one is planned sometime this month from Baikonur in Kazakhstan.

UK Business Secretary Kwasi Kwarteng said that Hanwha’s $300m investment is vote of confidence in the company. Kwarteng said that leading global investors see a promising future for OneWeb.

Herbert Smith Freehills LLP served as the legal counsel and UBS acted as the lead financial adviser to OneWeb on this transaction. Barclays are also financial advisers to the company.

Headquartered in London, OneWeb is implementing a constellation of Low Earth Orbit satellites with a network of global gateway stations and user terminals to provide an affordable, fast, high-bandwidth and low-latency communications service.

Also read: Bharti Global to pump in $500 million in satellite communication firm OneWeb