Advanced Television

Chinese buy 7% of Eutelsat

June 22, 2012

By Chris Forrester

Spain’s giant infrastructure company Abertis is selling seven per cent of its stake to China Investment Corp (for €385 million). This sale leaves Abertis with an 8.45 per cent holding having already sold down a 16 per cent stake in Eutelsat on January 13th.

That sale valued Eutelsat overall at about €6.1 billion. This sale, at a lower cost/share, values Eutelsat at some €5.5 billion.

CIC cannot take possession of the stock until mid-July, when an Abertis ‘lock-in’ expires. Abertis will make about €237 million in capital gain on the sale.

In a statement, Eutelsat said CIC would be a passive investor and would not take a seat on Eutelsat’s board.

Abertis still holds a 46.6 stake in Hispasat (which also has Eutelsat as an investor).

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