OneWeb has entered into an acquisition agreement with a consortium led by the government - through the UK Secretary of State for Business, Energy and Industrial Strategy - and Bharti Global in connection with its court-supervised sale process.

The bid is designed to capitalise the company sufficiently as a going concern to complete the deployment of the OneWeb communications satellite system.

Following a competitive process, the consortium’s winning bid represents an offer that will enable OneWeb to emerge from its US Chapter 11 bankruptcy process.

Bharti, through Bharti Airtel, is the third largest mobile operator in the world, with over 425 million customers and extensive mobile broadband networks which will act as the testing ground for OneWeb products, services and applications. The company's presence across South Asia and Sub-Saharan Africa, where the terrain necessitates the use of satellite-based connectivity, should also provide a near-term anchor customer for large-scale global deployment of OneWeb’s services.

OneWeb will contribute to the UK government’s ambition to join the first rank of space nations, along with its commitment to making the UK the world’s leader in scientific research and development.

Late last month, the government came in for criticism over its investment in OneWeb, which was described as “nonsensical” by experts, who said the company makes the wrong type of satellite.

The 20 per cent stake was intended to mitigate the UK’s loss of access to the EU’s Galileo satellite navigation system after Brexit. But all major satellite positioning systems operate in a medium Earth orbit of approximately 20,000 km from the planet, while OneWeb’s satellites operate in a low Earth orbit 1,200km up.

A statement today from OneWeb claimed that it remains ready to continue building its communications system to deliver transformative connectivity available everywhere - including to businesses and people in remote and rural parts of the world, starting with the Arctic.

Chief executive Adrian Steckel commented: “We are delighted to have concluded the sale process with such a positive outcome that will benefit not only OneWeb’s existing creditors, but also our employees, vendors, commercial partners and supporters worldwide who believe in the mission and in the promise of global connectivity.

"With differentiated and flexible technology, unique spectrum assets and a compelling market opportunity ahead of us, we are eager to conclude the process and get back to launching our satellites as soon as possible.”

The transaction remains subject to approval by the US Bankruptcy Court, as well as regulatory approvals and customary closing conditions. It is expected to close by the fourth quarter, but in the meantime, the purchasing consortium will work with the OneWeb management team to further develop the strategy and business plan and to resume the company’s launch schedule.

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