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India’s second largest telco has taken nearly a quarter stake in the company
This week, Bharti Global, the investment arm of Indian billionaire Sunil Mittal’s Bharti Enterprises, has became the largest shareholder of the UK’s BT after completing its 24.5% stake purchase from Altice.
The financial value of the deal was not officially announced, but is reportedly around £4 billion.
The deal for Bharti to acquire the 24.5% stake was struck in August, with BT CEO Allison Kirkby calling the decision a vote of confidence in the UK incumbent’s growth prospects.
“We welcome investors who recognise the long-term value of our business and this scale of investment from Bharti Global is a great vote of confidence in the future of BT Group and our strategy,” she said.
“Bharti has long recognised the enormous potential of the business. BT’s renewed focus on optimisation, strengthening networks and driving consumer growth makes it well placed to consolidate its position as a leading global telecoms company that delivers long-term value for investors,” said Sunil Bharti Mittal, Founder and Chairman of Bharti Enterprises in a statement.
After building up its stake in BT over the past three years, Altice’s decision to offload the stake represents a significant change in strategy.
Altice’s debt pile stands at around €60 billion, leading billionaire owner Patrick Drahi to shift focus towards streamline the business and selling off its non-critical assets.
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