FTSE 100 giant BT Group’s largest shareholder has agreed to sell its 24.5 per cent stake in the telecoms company to Indian conglomerate Bharti.
French owner Altice, which has struggled with rising debts in recent years, has sold the stake that in built in 2021 to Bharti, though the company said it had “no intention of making an offer to acquire the company”.
The group has agreed to sell the stake to Bharti Televentures UK Ltd – a company established and wholly owned by Bharti Global, the international investment arm of Bharti Enterprises.
Under the terms of the deal, shares equal to 9.99 per cent of BT’s stock will be transferred imminently, with the remaining 14.5 per cent moved over following regulatory approval.
Bharti said it would also apply for clearance under the UK National Security and Investment Act.
Earlier this year, it was revealed that Altice had taken out several loans to build the position in BT Group.
However, as the group’s financial position has come under increasing scrutiny, there has been increasing chatter that the group could look to sell its position.
Bharti was keen to frame the move as a “vote of confidence in the UK as an attractive global destination for investment” and noted that the two companies have a long-standing relationship. BT was a significant minority shareholder in Bharti from 1997 to 2001.
Allison Kirkby, chief executive of BT Group, said: “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.
“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. They have a strong track record of success in the sector, and I look forward to ongoing and positive engagement with them in the months and years to come.”
Sunil Bharti Mittal, chair of Bharti Enterprises, added: “This investment demonstrates the confidence we have in BT and in the UK. BT has a strong portfolio of market leading brands, high-quality assets and an experienced management team with a compelling strategy mandated by the BT Board to deliver value over the long term, which we fully support.
“BT is playing a vital role to expand access to full-fibre broadband infrastructure for millions of people across the UK. Its focus on strengthening its networks, driving consumer growth, and optimising every aspect of its business makes it well-placed to consolidate its position as a leading global telecoms company.
“Bharti’s own record of owning and operating telecom and broadband networks around the world is underpinned by placing customers, digital innovation, and operational efficiency at the heart of its business.”