This injection will guarantee the company the necessary liquidity to undertake the 2020-2024 Business Plan in a viable manner
Eurona, the Spanish telecommunications multinational, continues to make progress with its internal reorganisation plan with the aim of achieving profitable and sustainable growth in its strategic businesses. To this end, it has closed a capital increase of 57 million euros at the height of the pandemic and has voluntarily filed for bankruptcy proceedings against its former holding company, which was barely active.
Thus, Global Satellite Technologies (GST), an investee company of Eurona Wireless Telecom SA that integrates the main assets - the Satellite, Hotspot and Fixed Wireless- businesses, has approved a capitalization of the credit rights derived from the loans granted by Realta, Premaat and Houlihan Lockey for an amount of 51 million euros, to which an additional injection of 6 million is added to guarantee the company the necessary liquidity to undertake the 2020-2024 Business Plan in a viable manner.
This plan is focused on the strategic areas of Satellite, Hotspot, and 4G for the residential and business market. Also, it focuses its expansion in Africa, replicating in other countries like Senegal, Benin or Ivory Coast, the success case of Morocco, where it has become a reference in Internet by Satellite connecting 5,000 schools, giving service to different administrations and strategic companies or making possible the remote medicine service.
Thus, with this extra funding in the midst of the pandemic to underpin the growth plan and after successfully renegotiating its satellite capacity leases with long term partners such as Hispasat, Eurona has everything in its favour to achieve profitable and sustainable growth for the group.
Just a few weeks ago, the company reported an increase of 60% in the average number of Internet connections via satellite in the villages of 'Empty Spain' in March, the first month of the government's ban on the spread of the coronavirus.
According to Fernando Ojeda, CEO of Eurona, "closing this capitalisation operation at this sensitive time for the Spanish economy reflects the high potential of the project and the firm support of our trusted partners".