The UK government has announced that it will invest $500 million in space exploration firm OneWeb. The investment also means that the government will take a “significant equity share” in the firm.
As part of a consortium of investors, Bharti Global will also invest $500 million in the company. Bharti owns the third-largest mobile provider in the world, Bharti Airtel, with an estimate of more than 425 million customers.
OneWeb had filed for Chapter 11 bankruptcy protection in the US in March 2020 after an inability to secure financing. Chapter 11 bankruptcy is usually filed by a company to keep its business alive and reorganise to pay its creditors over time.
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The deal will give the UK government about a 45% percent stake in OneWeb and also allow it to complete the construction of the satellite constellation. The deal will make the “UK a world leader in science, research, and development.”
Why the UK is investing in OneWeb
According to the UK Secretary of State for Business Alok Sharma, the deal “presents the opportunity to further develop our strong advanced manufacturing base right here in the UK.”
As part of its breakaway from the European Union, the UK lost access to the EU’s Galileo satellite system in 2018. Its plans to build its own global navigation satellite system are also on hold due to cost concerns. The project was estimated at $6.2 billion, however, this new deal put them back on track.
This deal is however still subject to US regulatory approval, and that will likely come before the end of 2020. OneWeb in a statement, says that it is seeking to resume operations as soon as possible.
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