Bharti Global Acquires 24.5% Stake in BT Group
In a significant shift in ownership for the British telecoms giant, Bharti Global, the international investment arm of India's Bharti Enterprises, has acquired a 24.5% stake in BT Group. This makes Bharti Global the largest shareholder in BT.
an initial 9.99% stake will be acquired immediately, followed by the remaining 14.51% subject to regulatory approval. Bharti is also seeking clearance under the UK's National Security and Investment Act.
This move comes as French billionaire Patrick Drahi, who first invested in BT in 2021 through his company Altice UK, faces increasing pressure from bondholders due to Altice's substantial debt burden. Drahi has been offloading assets to generate cash, and the sale to Bharti Global is the latest in this strategy.
Bharti Enterprises, chaired by Sunil Bharti Mittal, has a diverse portfolio that includes telecoms, digital infrastructure, and space communications. Bharti Airtel is one of its flagship companies. Mittal expressed confidence in BT's strong portfolio, assets, and management team, affirming the company's commitment to supporting BT's long-term strategy.
The relationship between Bharti and BT is not new; BT previously held a 21% stake in Bharti Airtel from 1997 to 2001.
Allison Kirkby, CEO of BT, welcomed the investment, stating, "This scale of investment from Bharti Global is a great vote of confidence in the future of BT Group and our strategy. BT has enjoyed a long association with Bharti Enterprises, and I'm pleased that they share our ambition and vision for the future of our business."
The deal underscores Bharti Global's strategic interest in the UK telecoms sector while also providing Drahi with a much-needed financial reprieve as he navigates Altice's challenging debt landscape.