Indian Group Bharti to Acquire Stake in British Telecom for £3.2 Billion
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British Telecom (BT) headquarters in London
London (Reuters) – Indian conglomerate Bharti Enterprises announced today its acquisition of a 24.5% stake in British Telecom (BT), valued at approximately £3.2 billion (€3.74 billion), from billionaire Patrick Drahi’s Altice group.
Bharti clarified that it has no intention of launching a takeover bid for BT, the former state monopoly and leading broadband and mobile operator in the UK.
The Indian group explained that it would initially acquire a 9.99% stake and subsequently repurchase the remaining 14.51% once necessary regulatory approvals are obtained, particularly in light of the UK’s National Security and Investment Act.
Drahi, who joined BT capital in 2021 and increased his stake in 2023, is now facing pressure to sell assets to reduce Altice’s massive debts, which have burdened the company in its expansion across media and telecoms.
In September, Altice mandated investment banks to review its European assets with a view to potential sales to address its debt burden, which stands at $60 billion.
The acquisition sparked concern among the UK government, which intervened in 2021 to protect the company.
Bharti expressed its support for BT’s management and strategy, committing to a transformative program to ensure long-term growth.
BT’s shares surged by 6% in early trading, reaching 139 pence. The stock has climbed by 24% in the past six months as the company’s fiber optic network expansion plan gains traction.
“The scale of this investment from Bharti Global is a huge vote of confidence in the future of the BT Group and our strategy,” said BT’s chief executive, Allison Kirby.
Bharti Airtel, the Indian conglomerate’s flagship and second-largest telecom operator, operates in 17 countries across South Asia and Africa.
Bharti president Sunil Bharti Mittal clarified that he has no interest in a board seat, noting the long-standing relationship between the two groups, with BT previously holding a stake in Bharti Airtel from 1997 to 2001.