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Patrick Drahi sells 24.5% BT stake to India’s Bharti Global, which rules out full acquisition

August 12, 2024

Indian business group Bharti Global acquires a 24.5% stake in BT from Patrick Drahi’s Altice UK. Bharti Global, now BT's largest shareholder, confirms it has no intention of a full takeover.

Patrick Drahi, the debt-laden media tycoon, has sold a 24.5 per cent stake in BT Group to Bharti Global, the international investment arm of India’s Bharti Enterprises.

The transaction marks a significant shift in ownership for the British telecoms giant as Bharti Global becomes its largest shareholder.

Bharti Global has confirmed that it has no intention of pursuing a full takeover of BT. The acquisition, which caused BT shares to rise by 6.5 per cent to 139p this morning, will be completed in two stages. The initial 9.99 per cent stake will be acquired “imminently,” with the remaining 14.51 per cent to follow, subject to regulatory approval. Bharti is also seeking clearance under the UK’s National Security and Investment Act.

Drahi, a French billionaire who first invested in BT in 2021 through his company Altice UK, has been under increasing pressure from bondholders due to Altice’s substantial debt burden, reported to be around $60 billion. In response, Drahi has been offloading assets to generate cash, with the sale to Bharti Global being the latest move in this strategy.

Bharti Enterprises, chaired by Sunil Bharti Mittal, has a diverse portfolio that includes telecoms, digital infrastructure, and space communications, with Bharti Airtel being one of its flagship companies. Commenting on the investment, Mittal expressed confidence in BT’s strong portfolio, assets, and management team, affirming the company’s commitment to supporting BT’s long-term strategy.

The relationship between Bharti and BT is not new; BT previously held a 21 per cent stake in Bharti Airtel from 1997 to 2001, fostering a longstanding connection between the two companies.

Allison Kirkby, CEO of BT, welcomed the investment, stating, “This scale of investment from Bharti Global is a great vote of confidence in the future of BT Group and our strategy. BT has enjoyed a long association with Bharti Enterprises, and I’m pleased that they share our ambition and vision for the future of our business.”

The deal underscores Bharti Global’s strategic interest in the UK telecoms sector while also providing Drahi, who owns auction house Sotheby’s, with a much-needed financial reprieve as he navigates Altice’s challenging debt landscape.