Eutelsat Stock Plunges: Hanwha Sale and Financial Concerns
The Eutelsat stock is experiencing a massive crash triggered by the sale of Hanwha Systems’ entire stake. This sale has not only affected the stock price but has also heightened investor concerns.
Hanwha Systems Sale
Hanwha Systems, part of the South Korean conglomerate Hanwha, has sold its entire 5.4% stake in Eutelsat. The sale occurred at a price of €3 per share, representing a discount of nearly 14% compared to Wednesday’s closing price. This transaction marks a significant loss for Hanwha, as the original investment in 2021 was $300 million, and the current value of the package is now only about $85 million — a loss of around 74%.
Impact on the Stock Price
The sale by Hanwha Systems has led to a sharp decline in Eutelsat’s stock price. On Thursday, the stock fell by as much as 16.8% in Paris and was down by 14.5% at midday, at €2.98. This crash reflects investor concerns intensified by the exit of a significant investor and ongoing financial worries at Eutelsat.
Financial Concerns at Eutelsat
Eutelsat is facing significant financial challenges, particularly regarding the financing of OneWeb. These uncertainties contribute to investor anxiety and negatively impact the stock price. The OneWeb financing is a central issue that weighs on Eutelsat’s future prospects and unsettles investors.
Summary
The sale of Hanwha’s stake in Eutelsat has significantly impacted the stock price and exacerbated investor concerns. The financial challenges, especially related to OneWeb, contribute to this situation. The massive crash of Eutelsat’s stock reflects the uncertainty and worries of investors.