LONDON (Reuters) – India’s Bharti Enterprises said it plans to buy a 24.5 percent stake in BT, worth about 3.2 billion pounds ($4.2 billion), from the British telecoms operator’s biggest shareholder, billionaire Patrick Drahi, whose Altice group is struggling with heavy debt.
Bharti said in a statement on Monday that it had no plans to launch a takeover bid for the former state monopoly and Britain’s largest broadband and mobile operator.
The Indian group added that it would acquire an initial 9.99% stake before buying back the remaining 14.51% once it obtains the required regulatory approvals, particularly in light of the UK National Security and Investment Act.
Patrick Drahi bought into BT in 2021 and increased his stake in 2023, but Altice is now facing increasing pressure to sell assets to reduce a massive debt pile that helped build an empire spanning media and telecoms in a period of very low interest rates.
In September, Altice commissioned several investment banks to review its assets in Europe with a view to making possible sales to reduce its debt, which then stood at $60 billion.
Altice’s entry into one of Britain’s largest groups had alarmed the government at the time. In 2021, a spokesperson said the government would intervene if necessary to protect the company.
Bharti said it supported BT’s management team and strategy, which is committed to an “ambitious” transformation programme to deliver sustainable growth over the long term.
In early trade, the British operator’s shares were up 6% at 139 pence. Over the last six months, the stock has gained 24% as the group’s plan to build the country’s fibre optic network begins to bear fruit.
“The scale of this investment by Bharti Global is a huge vote of confidence in the future of BT Group and our strategy,” BT Chief Executive Allison Kirby said in a statement.
Bharti Airtel, the flagship of Bharti Enterprises and India’s second largest telecom operator, operates in 17 countries across South Asia and Africa.
Bharti Chairman Sunil Bharti Mittal said he had not asked for a board seat. The two companies have long-standing ties, he said, with BT holding a 21% stake in Bharti Airtel from 1997 to 2001.
(Reporting by Sarah Young and Yadarisa Shabong; Editing by Kate Entringer)
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