The ownership landscape of BT, one of the UK’s largest telecoms companies, is undergoing a major change. Bharti Global has acquired a 24.5% stake from Patrick Drahi’s Altice UK, making it BT’s largest shareholder. Bharti Global has clarified it has no intention of pursuing a full takeover.
The acquisition, which led to a 6.5% rise in BT shares to 139p, will be executed in two phases. Initially, Bharti Global will acquire a 9.99% stake “imminently”. The remaining 14.51% is contingent upon regulatory approval, including clearance under the UK’s National Security and Investment Act.
Patrick Drahi, the French billionaire who initially invested in BT in 2021 via Altice UK, has been facing mounting pressure from bondholders due to Altice’s substantial debt, estimated at around $60 billion. In response, Drahi has been selling assets to generate liquidity, with the sale to Bharti Global being his latest strategic move.
Bharti Enterprises, under the leadership of Sunil Bharti Mittal, boasts a diverse portfolio encompassing telecoms, digital infrastructure, and space communications. Bharti Airtel, one of its flagship companies, is a key player in the telecom sector. Mittal expressed strong confidence in BT’s portfolio, assets, and executive team, reaffirming Bharti’s commitment to supporting BT’s long-term strategy.
The relationship between Bharti and BT is longstanding. BT previously held a 21% stake in Bharti Airtel from 1997 to 2001, establishing a historical connection. Allison Kirkby, CEO of BT, commented, “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.” Meanwhile, this deal also provides Patrick Drahi with a crucial financial respite as he manages the pressures of Altice’s significant debt burden.
The deal underscores Bharti Global’s strategic emphasis on the UK telecoms sector, representing a significant vote of confidence in BT’s trajectory. Therefore, the transaction not only reshapes BT’s ownership structure but also highlights the fluidity of international investments in the global telecom market.
Bharti Global’s acquisition of a 24.5% stake in BT signifies a noteworthy realignment in the telecom company’s ownership. By confirming its non-intent to fully acquire BT, Bharti Global has made a strategic investment that reinforces its commitment to supporting BT’s ongoing strategy while providing liquidity relief to Patrick Drahi amidst his financial challenges.
