The BT Group logo is displayed on the smartphone.
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India’s Bharti Enterprises said it would acquire a 24.5% stake BTworth about 3.2 billion pounds ($4 billion), bought the top investor of the British company, telecommunications tycoon Patrick Drahi, as the Altice group is struggling with high debts.
Bharti said in a statement that it has no intention of making an offer to acquire all of BT, the former state monopoly which is Britain’s largest broadband and mobile company.
The Indian company said it would buy an initial 9.99% stake before seeking to add the remaining 14.51% after regulatory approval. It voluntarily applied for clearance under the UK National Securities and Investments Act.
Bharti said it is supporting BT’s executive team and strategy as the group moves forward with an “ambitious” transformation program to deliver long-term sustainable growth.
Shares in BT rose 6% to 139 pence in early trading.
Drahi first bought into BT in 2021, but his Altice group is under greater pressure to sell assets to reduce debt to $ 60 billion, a pile that has allowed him to build a media-to-telecommunications empire in an era of low interest. rate.
He announced a separate deal last week for Abu Dhabi wealth fund ADQ to buy into Sotheby’s auction house.
The purchase of one of Britain’s most important assets caused alarm in the government at the time, with a spokesman saying in 2021 it would intervene if necessary to protect the company.
BT shares have risen 24% in the last six months as a result of long-term investment plans to build the country’s fiber network kicking off.
Mexican magnate Carlos Slim bought a 3.2% stake in June this year, a boost for Allison Kirkby who took over as BT CEO in February.
“This scale of investment from Bharti Global is a great vote of confidence for the future of BT Group and our strategy,” Kirkby said in a statement following the investment.
There are no board seats
Bharti Airtel, the flagship company of Bharti Enterprises, operates in 17 countries in South Asia and Africa, and Airtel is the second largest telecom operator in India. BE is the main controlling entity of London-listed Airtel Africa.
Asked how much Bharti had paid for BT shares, Chairman Sunil Bharti Mittal pointed reporters to the market, saying the stock had recently bounced between 130 pence and 142 pence, with dividends paid.
He said the group did not ask for board space.
Bharti also said the deal is a vote of confidence in Britain and its stable business and policy environment, can nod to the country’s new Labor government which took over last month after five years of turmoil in the Conservative party.
“(BT’s) focus on strengthening its network, driving consumer growth, and optimizing every aspect of its business makes it well-placed to consolidate its position as a leading global telecommunications company,” Mittal said in the statement.
Bharti also noted its long-standing relationship with BT, which held a 21% stake in Bharti Airtel from 1997 to 2001.
