Bharti Global has moved to acquire a quarter of telecoms giant BT Group plc in a deal worth more than £3 billion.
Bharti Global is the international investment arm of Bharti Enterprises, an Indian business group comprising companies in telecoms, digital infrastructure and space communications.
It has reached an agreement to acquire an interest in around 24.5% of the issued share capital of BT Group plc from Altice UK, part of multinational telecommunications and mass media company Altice.
Founded by French-Israeli billionaire businessman Patrick Drahi, Altice is the second largest telecoms company in France and has its headquarters in the Netherlands. As reported by the Financial Times, it has recently sold off several assets to pay down debt.
The shares will be purchased through Bharti Televentures UK Ltd, a company established and wholly owned by Bharti Global which has entered into a binding agreement with Altice UK to acquire a 10% stake of BT’s issued capital imminently with the balance of 14.5% to be acquired following receipt of applicable regulatory clearances. At Friday’s closing price, Altice’s 24.5% stake was worth about £3.2bn.
Bharti, which is also applying voluntarily for UK National Security and Investment Act clearance, says it has no intention of executing a full takeover.
At the time of writing (9am), BT shares have jumped almost 9% in early trading following the announcement.
Bharti said it “endorses BT’s goal to transform the UK’s telecoms landscape by building fibre, rolling out 5G technology and developing market-leading services to live, work, game and learn”.
“This investment demonstrates the confidence we have in BT and in the UK,” said Sunil Bharti Mittal, chair of Bharti Enterprises. “BT has a strong portfolio of market leading brands, high-quality assets and an experienced management team with a compelling strategy mandated by the BT board to deliver value over the long term, which we fully support.
“Bharti and BT have enjoyed a longstanding relationship: BT previously owned a 21% stake along with two board seats in Bharti Airtel Limited from 1997 to 2001.”
Allison Kirkby (pictured), chief executive of BT, said: “We welcome investors who recognise the long-term value of our business, and 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. They have a strong track record of success in the sector, and I look forward to ongoing and positive engagement with them in the months and years to come.”