Ai bot
Sunil Bharti Mittal-led Bharti Enterprises announced on Monday its intention to purchase a 24.5% stake in BT Group, the largest broadband and mobile provider in Britain. Bharti Enterprises said that it would acquire a stake worth about 3.2 billion pounds ($4 billion). The acquisition will involve buying out the shares held by Altice UK, the investment vehicle of telecoms entrepreneur Patrick Drahi, who is currently BT’s largest shareholder.
Drahi initially invested in BT in 2021, but Altice group has been under increasing pressure to divest assets to reduce its debts, which have reached up to $60 billion, a sum that allowed him to expand his media-to-telecoms empire during a period of low interest rates.
Bharti outlined its acquisition strategy, stating that it will first acquire a 9.99% stake and then seek to purchase the remaining 14.51% after obtaining the necessary regulatory approvals. This includes voluntarily applying for clearance under the UK National Security and Investment Act.
Over the past six months, BT’s shares have experienced a 24% increase as the company begins to reap the benefits of its long-term investment plan to develop the country’s fibre network. In June of this year, Mexican magnate Carlos Slim acquired a 3.2% stake in BT, providing a boost to Allison Kirkby, who assumed the role of BT’s chief executive in February.
“This scale 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.
Bharti, for its part, emphasized that the deal also reflects confidence in Britain and its stable business and policy environment. This statement could be interpreted as a reference to the country’s new Labour government, which took office last month following five years of instability under the Conservative party.
“Its (BT’s) focus on strengthening its networks, driving consumer growth, and optimising every aspect of its business makes it well-placed to consolidate its position as a leading global telecoms company,” said Sunil Bharti Mittal, Chair of Bharti Enterprises, in the statement.
Drahi initially invested in BT in 2021, but Altice group has been under increasing pressure to divest assets to reduce its debts, which have reached up to $60 billion, a sum that allowed him to expand his media-to-telecoms empire during a period of low interest rates.
Bharti outlined its acquisition strategy, stating that it will first acquire a 9.99% stake and then seek to purchase the remaining 14.51% after obtaining the necessary regulatory approvals. This includes voluntarily applying for clearance under the UK National Security and Investment Act.
Over the past six months, BT’s shares have experienced a 24% increase as the company begins to reap the benefits of its long-term investment plan to develop the country’s fibre network. In June of this year, Mexican magnate Carlos Slim acquired a 3.2% stake in BT, providing a boost to Allison Kirkby, who assumed the role of BT’s chief executive in February.
“This scale 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.
Bharti, for its part, emphasized that the deal also reflects confidence in Britain and its stable business and policy environment. This statement could be interpreted as a reference to the country’s new Labour government, which took office last month following five years of instability under the Conservative party.
“Its (BT’s) focus on strengthening its networks, driving consumer growth, and optimising every aspect of its business makes it well-placed to consolidate its position as a leading global telecoms company,” said Sunil Bharti Mittal, Chair of Bharti Enterprises, in the statement.
