Bharti said it will take a 10% stake immediately, while the remaining amount will have to be cleared by regulators
Indian conglomerate Bharti Global signed an agreement with Altice to acquire its 24.5% in U.K.-based BT Group, international press reported.
The reports noted that the full value of the deal was informed, but it would have been worth about $4 billion based on BT’s closing stock market price at the end of last week.
The Indian company will take a 10% stake immediately, while the remaining amount will have to be cleared by regulators, according to the reports.
Bharti Global is an affiliate of Bharti Enterprises, which owns Indian carrier Bharti Airtel. The Bharti Airtel brand operates in 17 countries across South Asia and Africa
Bharti Enterprises’ founder and chairman Sunil Bharti Mittal stated he has no intention of launching a bid to buy out the rest of BT.
“This investment demonstrates the confidence we have in BT and in the U.K. 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,” Mittal said.
“BT is playing a vital role to expand access to full-fiber broadband infrastructure for millions of people across the U.K. Its focus on strengthening its networks, driving consumer growth, and optimizing every aspect of its business makes it well placed to consolidate its position as a leading global telecoms company,” he added.
With this move, Bharti Global joins several other high-profile BT shareholders that include German carrier Deutsche Telekom and a holding company owned by Mexican billionaire Carlos Slim.
“We welcome investors who recognize 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 CEO Allison Kirkby said in a statement.
“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,” added Kirkby.
The reports also stated that Bharti Enterprises is applying voluntarily for clearance under the U.K.’s National Security and Investment Act, which gives the U.K. Government oversight of takeovers involving critical assets in the country.
