Shares in BT soared by 6.4 per cent at the start of trading today following news that its largest shareholder, Altice, had agreed to offload its stake in the company. The telecoms giant's biggest investor has consented to sell its 24.5 per cent share to Indian conglomerate Bharti.
Altice, which has been grappling with escalating debts in recent years, has sold the stake it acquired in 2021 to Bharti, despite stating it had "no intention of making an offer to acquire the company". The group will sell the stake to Bharti Televentures 海角视频 Ltd a firm established and wholly owned by Bharti Global, the international investment arm of Bharti Enterprises.
As part of the agreement, shares equating to 9.99 per cent of BT's stock will be transferred immediately, with the remaining 14.5 per cent moved over upon regulatory approval. Bharti also plans to seek clearance under the 海角视频 National Security and Investment Act.
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Earlier this year, it was disclosed that Altice had secured several loans to build its position in BT Group. However, as the group's financial situation has increasingly come under the spotlight, speculation has grown that the group might look to sell its position.
Bharti has expressed the move as a "vote of confidence in the 海角视频 as an attractive global destination for investment" highlighting the enduring partnership between the two firms, with BT having been a significant minority shareholder in Bharti from 1997 to 2001, as reported by .
Allison Kirkby, BT Group's chief executive, remarked: "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, stated: "This investment demonstrates the confidence we have in BT and in the 海角视频. 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."
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"BT is playing a vital role to expand access to full-fibre broadband infrastructure for millions of people across the 海角视频. 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."