SoftBank plans to merge satellite groups OneWeb and Intelsat

SoftBank is hatching plans for a multi-billion dollar merger of two major satellite companies, OneWeb and Intelsat, in a deal that would create a global powerhouse in the fast-changing arena of space technology.

The Japanese technology investor SoftBank is hatching plans for a multi-billion dollar merger of two major satellite companies, OneWeb and Intelsat, in a deal that would create a global powerhouse in the fast-changing arena of space technology.

An announcement would come just two months after SoftBank invested $1bn in OneWeb, a move designed to help it build the world’s first high-volume satellite production facility in Florida.

SoftBank, which last year acquired the UK’s biggest home-grown technology company, ARM Holdings, would also commit to paying down some of Intelsat’s huge debt-pile as part of the transaction. It could invest several billion dollars through an offer to Intelsat’s debt-holder.

The deal is understood to be conditional on Intelsat’s bondholders accepting an offer at a slight premium to where the bonds were trading on Monday. OneWeb was valued at $2.5bn in its most recent fundraising, while Intelsat, shares in which have a market value of roughly $550m, carries about $15bn of debt.

In total, the new business, which effectively gives OneWeb a stock market listing, would have an enterprise value of about $18bn.