Bharti Enterprises, the Indian telecommunications giant, has pulled off a strategic coup: ha vested a share of 24,5% in BT Group, Britain's largest telecommunications operator, for approximately £3,2 billion ($4 billion). The operation involves the takeover of the shares held by Altice Uk, the billionaire's financial vehicle Patrick Drahi, but Bharti has made it clear that she is not seeking full control of the company or a seat on the board of directors.
The news had an immediate impact on the markets, with the Bt title which recorded a jump of 6,5% on the London Stock Exchange.
Bharti acquires 24,5% stake in BT Group: what happens now?
Bharti Enterprises, founded and led by billionaire Sunil Bharti Mittal, has confirmed its intention to proceed with agradual acquisition: It will initially take a 9,99% stake, before increasing its stake to 24,5% after obtaining the necessary regulatory approvals, including a review under the UK's National Security and Investment Act.
The challenges of Patrick Drahi and Altice UK
Patrick Drahi, which began investing in BT in 2021 through Altice UK, is now facing a significant debt accumulated over the years, the result of an aggressive acquisition strategy. In recent months, Drahi has also had to deal with the consequences of acorruption investigation which involved key figures in his group, further complicating attempts to reduce debt through asset sales.
Altice UK, part of the Altice group, is in fact in the midst of resignations. Recently, Drahi closed the sale of the video advertising platform Teads for approximately $1 billion to Outbrain Inc. and is currently in negotiations to sell Altice Portugal, the unit involved in the corruption investigation.
Bharti Enterprises' strategy
For Bharti Enterprises, this acquisition represents a further step in its global expansion strategy. The Indian group, already present in Africa and in various sectors of telecommunications, technology, digital infrastructure and space communications, has recently strengthened its presence in Europe through the acquisition of OneWeb, a British satellite communications company, which merged with Eutelsat in 2023.
Sunil Bharti mittal, president of Bharti Enterprises, enthusiastically commented on the transaction: “This investment is a clear expression of our confidence in BT and the opportunities offered by the UK. BT's focus on strengthening its networks, driving consumer growth and optimizing every aspect of its business makes it well positioned to consolidate its position as a leading global telecommunications company."
Mittal also recalled the historical link between Bharti and BT, underlining that from 1997 to 2001 BT held a 21% stake in Bharti Airtel, a relationship that is now further strengthened with this new operation.
