Eutelsat has sold its stake in Spanish satellite operator Hispasat for just more than 300 million euros ($371.24 million). Eutelsat had held a 33.69 percent stake the Spanish operator. The announcement brings to an end one of the most interesting European satellite operator collaborations in recent years.

The transaction concludes an agreement reached in May 2017 between Eutelsat and Abertis which was recently approved by the Spanish Council of Ministers, thereby lifting the last condition precedent to its completion. The divestment of Eutelsat’s stake in Hispasat is in line with the company’s strategy of rationalizing its portfolio of assets in order to maximize cash generation.

The initial theory on Eutelsat investing into Hispasat was to play in high growth markets in Latin America. However, having bought Satmex, Eutelsat has now a strong path into that market. Also, without ever likely to be in a position to get full control of Hispasat, Eutelsat has decided to exit a company where it has been a part of for around two decades. It marks a key significant change of strategy for Eutelsat. It was only in April 2013 that the operator purchased another six percent stake in Hispasat to take it to over a 33 percent stake. Five years later, it has now exited.