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Bharti Enterprises, an India-based conglomerate led by billionaire Sunil Bharti Mittal, has agreed to buy a 24.5% stake in BT Group from Patrick Drahi’s Altice.
In a statement on Monday, Bharti said it would buy 10% of BT from Altice immediately, with the remainder to be acquired after “receiving regulatory approvals”.
Bharti said it supported BT’s management team and strategy, and did not intend to make an offer for the entire company. It did not say how much it would pay for the stake. At Friday’s closing price, Altice’s 24.5 percent stake was worth about £3.2 billion.
AlticeAn investment group controlled by billionaire Drahi first took a stake in BT in 2021, holding a 12% stake and then increasing it. BT shares have fallen by about a third since Altice first became a shareholder.
Altice has recently been selling assets to pay down debt. In March, the company sold a news channel and a radio station to shipping tycoon Rodolphe Saadé. Last week, Altice partnered with Abu Dhabi-based sovereign wealth fund ADQ to offer $1 billion investment in auction house Sotheby’s.
“This investment demonstrates our confidence in BT and the UK,” said Mittal, chairman of Bharti Enterprises. “BT has a strong portfolio of market-leading brands, high-quality assets and an experienced management team with a compelling strategy.”
BT shares rose 7 percent at the start of trading on Monday.
BT “We welcome investors recognising the long-term value of our business and this scale of investment from Bharti Global is a huge vote of confidence in the future of BT Group and our strategy,” said chief executive Allison Kirkby.
Kirkby, who took over in February, said at the time the company would cut a further £3bn in costs and increase its dividend after BT hit its initial savings targets ahead of schedule.
Bharti Enterprises will buy its stake through Bharti Global, the company’s international investment arm. The group also owns Bharti Airtel, a telecommunications group with operations in India and Africa.
Bharti Airtel emerged as India’s second-largest telecom company after a fierce price war initiated by rival billionaire Mukesh Ambani in 2016 forced most domestic carriers to cut operations.
Shares of Mumbai-listed Bharti Airtel rose 0.5 percent on Monday and have risen 43 percent this year, outpacing the 10 percent gain in India’s benchmark BSE Sensex index.
