Indian conglomerate Bharti Enterprises is set to become the largest shareholder in the UK’s BT Group after acquiring billionaire Patrick Drahi’s stake in the company. Drahi’s Altice Group, which previously bought into BT in 2021, is now selling its 24.5% stake due to financial struggles and a $60 billion debt load exacerbated by rising interest rates and corruption allegations. Bharti’s move was positively received by the market, with BT’s shares closing 8.5% higher on the FTSE 100 after the announcement.
Bharti has no intention of buying the entire BT Group, as clarified in a statement to the London Stock Exchange. The Indian group praised the UK’s investment climate, describing its decision as a vote of confidence in the country’s business environment.
However, Drahi’s need to offload his BT stake highlights the challenges facing Altice, particularly amid Drahi’s well-publicized ventures in the art world and his recent sale of a minority stake in Sotheby’s to the Abu Dhabi wealth fund, ADQ.
Bharti Enterprises to Become Largest Shareholder in BT Group After Acquiring Altice Stake
The acquisition will take place in two stages, with Bharti first purchasing 9.99% of BT’s shares and acquiring the remaining 14.51% once regulatory approval is granted. Analysts estimate the initial 9% stake to be worth around £980 million. Bharti has also voluntarily applied for clearance under the UK’s National Security and Investment Act, reflecting the government’s oversight of critical infrastructure acquisitions when stakes exceed 25%.
This investment marks a significant milestone in the relationship between Bharti and BT, which previously held a 21% stake in Bharti Airtel Ltd from 1997 to 2001. Founded by Sunil Bharti Mittal in 1976, Bharti Enterprises has grown from a bicycle components manufacturer into a sprawling conglomerate with interests in telecoms, hotels, and satellite technology.
Mittal, whose wealth is valued at $23 billion, emphasized that Bharti sees long-term value in BT and supports the company’s focus on broadband infrastructure expansion.
BT executives, including CEO Allison Kirkby, welcomed Bharti’s investment as a sign of confidence in the company’s future. Kirkby highlighted the longstanding relationship between BT and Bharti, emphasizing the alignment of both companies’ visions for continued growth in the telecommunications sector. This deal follows Mexican billionaire Carlos Slim’s £400 million investment in a 3% stake in BT earlier in the year.
