India's Bharti Enterprises said it would acquire a 24.5% stake in BT, worth about 3.2 billion pounds, buying out the British company's top investor, telecoms tycoon Patrick Drahi as his Altice group struggles with high debts.
Bharti said in a statement on Monday that it had no intention of making an offer to acquire the whole of BT, the former state monopoly which is Britain's biggest broadband and mobile company.
Drahi first bought into BT in 2021, but his Altice group has come under mounting pressure to sell assets to cut debts of as much as $60 billion, a pile that allowed him to build his media-to-telecoms empire in an era of low interest rates.
The Indian company said it would acquire an initial 9.99% stake before seeking to acquire the remaining 14.51% following regulatory approvals, including voluntarily applying for clearance under the UK National Security and Investment Act.
BT's shares have risen by 24% in the last six months, as the fruits of its long-term investment plan to build the country's fibre network start to materialise.
Mexican magnate Carlos Slim bought a 3.2% stake in June this year, a boost for Allison Kirkby who took over as BT's chief executive in February.
"This scale of investment from Bharti Global is a great vote of confidence in the future of BT Group and our strategy," Kirkby said in a statement following the investment.
For its part, Bharti said the deal was also a vote of confidence in Britain and its stable business and policy environment, a possible nod to the country's new Labour government which took over last month after five years of turmoil under the Conservative party.
"Its (BT's) 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 Enterprises Chair Sunil Bharti Mittal said in the statement.
