Indian conglomerate Bharti Enterprises will acquire a 24.5% stake in BT Group from Altice UK, making it the largest shareholder in the UK’s leading telecommunications firm. The deal highlights Bharti’s strategic investment in the UK market and reflects the financial difficulties faced by Altice.
Bharti Enterprises has agreed to purchase a significant 24.5% stake in BT Group from Altice UK, a company controlled by billionaire Patrick Drahi. This move positions Bharti as the largest shareholder in BT, although Bharti has stated it has no plans to acquire the entire company.
The acquisition will occur in two phases: an immediate purchase of 9.99% of BT’s shares, with the remaining 14.51% to be acquired pending regulatory approvals. The exact financial terms of the deal remain undisclosed, but the 9.99% stake is estimated to be worth approximately £980 million.
Following the announcement, BT’s shares surged 8.5% to 141.50p, marking the company as the biggest riser on the FTSE 100 index for the day. Bharti’s investment reflects its confidence in BT and the UK market, emphasizing the stable business environment and long-term value offered by BT.
Altice, which bought its stake in BT in 2021, is currently grappling with significant financial challenges, including a $60 billion debt load and corruption allegations in Portugal. These issues, compounded by rising interest rates, have prompted the sale.
Bharti Enterprises is applying voluntarily for clearance under the UK’s National Security and Investment Act, which oversees takeovers involving critical infrastructure. This investment is notable for Bharti as it echoes the historical connection between the two companies, with BT previously holding a 21% stake in Bharti Airtel from 1997 to 2001.
Sunil Bharti Mittal, Chairperson of Bharti Enterprises, expressed confidence in BT’s future, highlighting its strong portfolio and strategic direction. He underscored Bharti’s commitment to leveraging its experience and capital to support BT’s growth and operations.
Allison Kirkby, BT Group’s Chief Executive, welcomed the investment, viewing it as a significant endorsement of BT’s value and strategic vision. She anticipated positive engagement and collaboration with Bharti in the future.
The investment comes amid broader trends of Indian entities acquiring major British brands, reflecting an ongoing pattern of international expansion by Indian conglomerates.