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Bharti Enterprises of India said it will acquire 24.5% stake in Bharti Enterprises of India BTThe company, worth about 3.2 billion pounds ($4 billion), bought a stake in the British company’s biggest investor, telecoms tycoon Patrick Drahi, at a time when his Altice Group was facing high debt.
Barty said in a statement on Monday that he had no intention of making an offer to buy all of BT, the former state monopoly and Britain’s largest broadband and mobile company.
The Indian company said it will first buy a 9.99% stake and then seek to increase the remaining 14.51% stake after receiving regulatory approval. It is applying for a license under the UK National Security and Investment Act on a voluntary basis.
Barty said it supports BT’s executive team and strategy as the group drives an “ambitious” transformation plan to achieve long-term sustainable growth.
BT shares were up 6% in early trading at 139p.
Drahi first took a stake in BT in 2021, but his Altice group is under increasing pressure to sell assets to cut up to $60 billion in debt that has allowed him to build his media business in an era of low interest rates to Telecom Empire rates.
He announced a separate deal last week for Abu Dhabi wealth fund ADQ to acquire his Sotheby’s auction house.
His acquisition of one of Britain’s most important assets caused alarm within the government at the time, with a spokesman saying the government would intervene in 2021 to protect the company if necessary.
BT’s shares have risen 24% in the past six months as the results of its long-term investment plan to build the country’s fiber optic network begin to show.
Mexican magnate Carlos Slim bought a 3.2% stake in June, a boost for Allison Kirkby, who took over as BT chief executive in February .
“An investment of this magnitude from Bharti Global is a huge vote of confidence in the future of BT Group and our strategy,” Kirkby said in a statement after the investment.
No board seats
Bharti Airtel is the flagship company of Bharti Enterprises and operates in 17 countries in South Asia and Africa. Airtel is India’s second largest telecom operator. BE is the ultimate holding entity of London-listed Airtel Africa.
Asked how much Bharti paid for the BT shares, chairman Sunil Bharti Mittal pointed out to reporters that the stock had recently bounced between 130p and 142p and that it had paid Dividends.
He said the group did not ask for a board seat.
Barty also said the deal was a vote of confidence in the UK and its stable business and policy environment, and could be a nod to Britain’s new Labor government, which ended last week after five years of turmoil under the Conservatives. Yue takes the stage.
“(BT’s) focus on strengthening its network, driving consumer growth and optimizing all aspects of its business positions it to strengthen its position as the world’s leading telecommunications company,” Mittal said in a statement.
Bharti also pointed to its long-standing relationship with BT, which held a 21% stake in Bharti Airtel from 1997 to 2001.
