India’s Bharti Swoops to Buy 24.5% of BT From Troubled Altice

(Bloomberg) — Bharti Global has agreed to buy about 24.5% of BT Group Plc, a deal to invest in a $17 billion British carrier that will accelerate an expansion overseas.

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Bharti, an affiliate of Indian conglomerate Bharti Enterprises, is buying stock from shareholder Altice UK, it said in a statement. The Indian firm, founded by Sunil Bharti Mittal, said it has no intention of offering to buy out the rest of BT.

“We are long-term telecom investors,” Mittal said in a call with reporters on Monday. “This is not a stock market operation.”

BT shares rose as much as 7.6% in London after the announcement.

Bharti’s stake in BT is part of an international expansion effort that follows investments in Africa and UK-based satellite company OneWeb, which merged with Eutelsat in 2023. Bharti didn’t disclose how much it will pay in the transaction. The Altice stake would have been worth about £3.2 billion ($4.1 billion) at Friday’s closing price.

Altice UK is part of billionaire Patrick Drahi’s telecommunications group Altice, which has been trying to sell off assets over the past year in an effort to slash debt after years of acquisitions. Sales have been complicated by the fallout from a corruption investigation into key individuals tied to the group. Altice has said it’s the victim of the alleged wrongdoings.

Earlier this month, Altice agreed to sell video advertising platform Teads for about $1 billion to US ad company Outbrain Inc. Also up for sale is Altice Portugal, the unit at the center of the corruption probe involving Armando Pereira, co-founder of Altice and Drahi’s right-hand before his 2023 arrest.

Altice UK is one of several entities owned by Drahi’s investment vehicle Next Alt Sarl. Others include Altice International, which includes the company’s units in Portugal, Dominican Republic and Israel; Altice France, which runs French carrier SFR, and Altice USA. Drahi also owns auction house Sotheby’s.

BT is the UK’s largest telecoms operator that has seen its share price drop for years. The company’s new Chief Executive Officer Allison Kirkby joined at the start of the year and announced a major cost-cutting plan that excited investors.

Mittal said that BT has had a “glorious past” and a “tremendous amount of physical infrastructure in the UK.”

Bharti Global is the international investment arm of Bharti Enterprises, with investments in telecom, technology, digital infrastructure and space communications.

(Updates with context throughout)