Join our daily newsletter At The Bell to receive exclusive market insights
- Electro Optic Systems (EOS) appoints OHB Systems AG as the preferred tenderer for the satellite manufacturing contract
- The parties are currently in advanced negotiations in relation to the contract and expect to sign an “Authorisation to Proceed” next week
- The total value of the contract is expected to exceed US$300 million (about A$408 million)
- Under the contract, it is expected that OHB will deliver four high-capacity relay satellites in the first quarter of 2024
- EOS is up 7.31 per cent and is trading at $3.67 per share at 2:57 pm AEDT
Electro Optic Systems (EOS) shares jump today after appointing OHB Systems AG as the preferred tenderer for the satellite manufacturing contract.
The parties are currently in advanced negotiations in relation to the contract and expect to sign an “Authorisation to Proceed” next week.
An Authorisation to Proceed is the legal requirement for the commencement of the project and the finalisation of the contract.
The total value of the contract is expected to exceed US$300 million (about A$408 million).
Under the contract, it is expected that OHB will deliver four high-capacity relay satellites in the first quarter of 2024.
These satellites will include multiple subsystems and components, roughly half of which will be provided by selected US suppliers.
Additionally, OHB intends to invest US$25 million (approximately A$34 million) into EOS’s US subsidiary, SpaceLink, as the cornerstone investor in the first tranche of financing for the project.
EOS was up 7.31 per cent, trading at $3.67 per share at 2:57 pm AEDT.
