DBT Bureau
Bengaluru, 12 August 2024
Telecom major, Bharti Enterprises on Monday said it would buy a 24.5% stake in BT (British Telecom) worth around $4 billion, making it one of the biggest bets overseas. Post this transaction, Bharti Enterprises, which operates in the name of Airtel in India, will be the British telecom company’s largest stakeholder.
According to the announcement, India’s second-largest mobile operator Airtel will purchase the BT stake held by European telecom and mass media company Altice.
The conglomerate said it will immediately acquire a 9.99% stake in BT through Bharti Global, which is the group’s investment arm, while the remaining stake will be bought upon receiving regulatory clearances.
“Bharti and BT have an enduring relationship going back more than two decades wherein BT owned 21% stake along with two board seats in Bharti Airtel Ltd from 1997 to 2001. Today marks a significant milestone in Bharti Group’s history as we invest in BT, an iconic British company,” Sunil Bharti Mittal, Chairman of Bharti Enterprises, said in a statement.
Allison Kirkby, CEO of BT said that the investment by Bharti Enterprises was a “great vote of confidence in the future of BT group and our strategy.”
Bharti’s investment in BT is likely to offer breather for Altice and its promoter, Patrick Drahi. Notably, Drahi owns auction house Sotheby’s. Altice is reeling under $60 billion of debt, prompting Drahi to sell assets to bring down the debt level. In March this year, Altice had divested stake in its radio station and news channel to shipping tycoon Rodolphe Saade for about $2 billion. Similarly, Abu Dhabi sovereign fund ADQ would soon buy a stake in Sotheby’s.
