by Under the leadership of Sunil Bharti Mittal Bharti Companies announced on Monday its intention to acquire a 24.5% stake in BT Groupthe UK’s largest broadband and mobile operator. Bharti Enterprises announced that it would acquire a stake worth around £3.2 billion ($4 billion). The acquisition includes the purchase of the shares of Altice UKthe investment instrument of the telecommunications operator Patrick Drahiwhich is currently BT’s largest shareholder.
Drahi originally invested in BT in 2021, but the Altice group is under increasing pressure to sell assets to reduce its debt, which has now grown to $60 billion, a sum that allowed Drahi to expand his media and telecom empire at a time of low interest rates.
Explaining its acquisition strategy, Bharti said that the company will initially acquire a 9.99% stake and then seek to acquire the remaining 14.51% after obtaining the necessary regulatory approvals, including voluntarily applying for approval under the UK’s National Security and Investment Act.
Over the past six months, BT shares have risen 24 percent as the company begins to reap the rewards of its long-term investment plan to expand the country’s fiber optic network. In June this year, Mexican tycoon Carlos Slim bought a 3.2 percent stake in BT, giving a boost to Allison Kirkby, who took over as BT chief executive in February.
“This level of investment from Bharti Global is a great vote of confidence in the future of BT Group and our strategy,” Kirkby said in a statement following the investment announcement.
For his part, Bharti stressed that the deal also shows confidence in Britain and its stable economic and political environment. This statement could be interpreted as a reference to the country’s new Labour government, which took office last month after five years of instability under the Conservative Party.
“BT’s focus on strengthening its networks, driving consumer growth and optimising all aspects of its business puts the company in a strong position to consolidate its position as a leading global telecommunications company,” Sunil Bharti Mittal, chairman of Bharti Enterprises, said in the statement.
Drahi originally invested in BT in 2021, but the Altice group is under increasing pressure to sell assets to reduce its debt, which has now grown to $60 billion, a sum that allowed Drahi to expand his media and telecom empire at a time of low interest rates.
Explaining its acquisition strategy, Bharti said that the company will initially acquire a 9.99% stake and then seek to acquire the remaining 14.51% after obtaining the necessary regulatory approvals, including voluntarily applying for approval under the UK’s National Security and Investment Act.
Over the past six months, BT shares have risen 24 percent as the company begins to reap the rewards of its long-term investment plan to expand the country’s fiber optic network. In June this year, Mexican tycoon Carlos Slim bought a 3.2 percent stake in BT, giving a boost to Allison Kirkby, who took over as BT chief executive in February.
“This level of investment from Bharti Global is a great vote of confidence in the future of BT Group and our strategy,” Kirkby said in a statement following the investment announcement.
For his part, Bharti stressed that the deal also shows confidence in Britain and its stable economic and political environment. This statement could be interpreted as a reference to the country’s new Labour government, which took office last month after five years of instability under the Conservative Party.
“BT’s focus on strengthening its networks, driving consumer growth and optimising all aspects of its business puts the company in a strong position to consolidate its position as a leading global telecommunications company,” Sunil Bharti Mittal, chairman of Bharti Enterprises, said in the statement.
