Bharti Enterprises, the Indian conglomerate led by billionaire Sunil Bharti Mittal, has agreed to acquire a 24.5% stake in BT Group from Patrick Drahi’s Altice.
On Monday, Bharti announced that it would immediately purchase 10% of BT’s shares from Altice, with the remaining shares to be acquired once regulatory approvals are secured.
Bharti expressed support for BT’s executive team and strategy, and clarified that it does not intend to make a bid for the entire company. The purchase price was not disclosed, but at Friday’s closing price, Altice’s 24.5% stake was valued at approximately £3.2 billion.
Altice, an investment group controlled by billionaire Patrick Drahi, initially acquired a 12% stake in BT in 2021, later increasing its holding. Since Altice’s initial investment, BT’s shares have declined by around a third.
Altice has been selling assets to reduce debt, including the sale of a news channel and a radio station in March to shipping magnate Rodolphe Saadé. Recently, Altice also partnered with Abu Dhabi’s sovereign wealth fund ADQ to inject $1 billion into auction house Sotheby’s.
Mittal, chairman of Bharti Enterprises, commented, ‘This investment reflects our confidence in BT and the UK market. BT has a strong portfolio, high-quality assets, and a skilled management team with a clear strategy.’
BT’s shares surged by 7% at the start of trading on Monday.
BT CEO Allison Kirkby welcomed the investment, stating, ‘We appreciate investors who recognize the long-term value of our business, and Bharti Global’s substantial investment is a strong endorsement of BT Group’s future and our strategic direction.’
Kirkby, who became CEO in February, announced that BT would target an additional £3 billion in cost reductions and increase its dividend, following the company’s early achievement of its initial savings goal.
Bharti Enterprises plans to acquire its stake through Bharti Global, the international investment division of the conglomerate. Bharti Enterprises also owns Bharti Airtel, a telecom company with operations in India and Africa.
Bharti Airtel became India’s second-largest telecom provider after a fierce price war initiated by rival billionaire Mukesh Ambani in 2016, which significantly reduced the number of operators in the country.
On Monday, Bharti Airtel’s shares, listed in Mumbai, rose by 0.5%, and they have gained 43% this year, outperforming the 10% increase of India’s benchmark BSE Sensex index.
