India’s Bharti to buy Drahi’s stake in BT, worth $4 billion

[Pelican Press 0]

This is the hidden content, please

• Sign In
• or
• Sign Up

India’s Bharti to buy Drahi’s stake in BT, worth $4 billion

The BT Group logo is displayed on a smartphone.

Sopa Images | Lightrocket | Getty Images

India’s Bharti Enterprises said it would acquire a 24.5% stake in BT, worth about 3.2 billion pounds ($4 billion), buying out the British company’s top investor, telecoms tycoon Patrick Drahi, as his Altice group struggles with high debts.

Bharti said in a statement on Monday that it had no intention of making an offer to acquire the whole of BT, the former state monopoly which is Britain’s biggest broadband and mobile company.

The Indian company said it would buy an initial 9.99% stake before seeking to add the remaining 14.51% following regulatory approvals. It is voluntarily applying for clearance under the *** National Security and Investment Act.

Bharti said it supported BT’s executive team and strategy as the group pushed forward with an “ambitious” transformation programme to deliver long-term sustainable growth.

Shares in BT were up 6% to 139 pence in early trading.

Drahi first bought into BT in 2021, but his Altice group has come under mounting pressure to sell assets to cut debts of as much as $60 billion, a pile that allowed him to build his media-to-telecoms empire in an era of low interest rates.

He announced a separate deal last week for the Abu Dhabi wealth fund ADQ to buy into his Sotheby’s auction house.

His purchase of one of Britain’s most important assets caused alarm within the government at the time, with a spokesperson saying in 2021 it would intervene if necessary to protect the company.

BT’s shares have risen by 24% in the last six months as the fruits of its long-term investment plan to build the country’s fibre network start to materialise.

******** magnate Carlos Slim bought a 3.2% stake in June this year, a boost for Allison Kirkby who took over as BT’s CEO in February.

“This scale of investment from Bharti Global is a great vote of confidence in the future of BT Group and our strategy,” Kirkby said in a statement following the investment.

No board seat

Bharti Airtel, the flagship firm of Bharti Enterprises, operates in 17 countries across South Asia and *******, and Airtel is India’s second largest telecommunication carrier. BE is the ultimate controlling entity of London-listed Airtel *******.

Asked how much Bharti had paid for the BT stake, Chairman Sunil Bharti Mittal pointed reporters to the market, noting that the shares had recently bounced between 130 pence and 142 pence, with a dividend paid out.

He said the group had not asked for a board seat.

Bharti also said the deal was a vote of confidence in Britain and its stable business and policy environment, a possible nod to the country’s new Labour government which took over last month after five years of turmoil under the ************* party.

“(BT’s) focus on strengthening its networks, driving consumer growth, and optimising every aspect of its business makes it well-placed to consolidate its position as a leading global telecoms company,” Mittal said in the statement.

Bharti also noted its long-standing relationship with BT, which owned a 21% stake in Bharti Airtel from 1997 to 2001.

This is the hidden content, please

• Sign In
• or
• Sign Up

#Indias #Bharti #buy #Drahis #stake #worth #billion

This is the hidden content, please

• Sign In
• or
• Sign Up

This is the hidden content, please

• Sign In
• or
• Sign Up

For verified travel tips and real support, visit: https://hopzone.eu/