1 min read.Updated: 29 Jun 2020, 11:27 PM ISTBloomberg
An arm of Mittal’s Bharti Enterprises Ltd. conglomerate made an offer for the bankrupt satellite firm with backing from the UK govt, according to the people with knowledge of the matter
Indian telecommunications tycoon Sunil Mittal has submitted a bid for OneWeb, the bankrupt satellite firm whose investors include SoftBank Group Corp., people with knowledge of the matter said.
An arm of Mittal’s Bharti Enterprises Ltd. conglomerate made an offer for London-based OneWeb with backing from the U.K. government, according to the people, who asked not to be identified because the information is private.
The UK government plans to commit around $500 million to OneWeb alongside other investors as part of the company’s Chapter 11 bankruptcy proceedings, a person with knowledge of the matter said last week. OneWeb has said that bids were due Friday.
Part of the U.K.’s interest in supporting OneWeb is to form the basis for a new national navigation system, after the European Union froze Britain out of the most secure elements of the bloc’s project, called Galileo. Prime Minister Boris Johnson is trying to attract fresh foreign investment from countries including India, China and the U.S. to help offset the U.K.’s departure from the EU.
Mittal’s group controls Bharti Airtel Ltd., India’s second-biggest wireless operator. Shares of Bharti Airtel have risen 24% this year, giving the company a market value of about $41 billion. The carrier is the biggest shareholder of Mumbai-listed tower operator Bharti Infratel Ltd.
Other suitors have also been pursuing OneWeb, and there’s no certainty the Indian group’s bid will be successful, the people said. A representative for Bharti couldn’t immediately comment, while a spokesperson for OneWeb declined to comment.
A representative for the U.K.’s Department for Business, Energy & Industrial Strategy declined to comment on any bid.
“We have made clear our ambitions for space and are developing a new National Space Strategy to bring long-term strategic and commercial benefits to the U.K.," the government spokesperson said in an emailed statement. “We are in regular discussions with the space industry as part of this work."
Bharti Enterprises participated in a 2015 funding round for OneWeb alongside other investors including Qualcomm Inc., Richard Branson’s Virgin Group and Airbus Group NV. OneWeb formed an alliance in 2018 with partners including Delta Air Lines Inc., Bharti Airtel and Sprint Corp. to allow wireless carriers to extend their service into airplane cabins.
This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.
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