Hefty BT stake changes hands

Indian billionaire Sunil Mittal, who has a net worth of around $19.7 billion (€18.03 billion), is buying a 24.5 per cent stake in BT.

The acquisition from another billionaire businessman, French-Israeli Patrick Drahi, will make Bharti Global – the investment division of the Mittal family’s telecommunications’ group Bharti Enterprises – BT’s largest shareholder.

BT welcomed the deal on August 12.

“This scale of investment from Bharti Global is a great vote of confidence in the future of BT Group and our strategy,” BT’s chief executive Allison Kirkby declared.

Bharti Enterprises will first of all acquire a 9.99 per cent holding in BT, followed by the remaining 14.51 per cent once this has received security clearance from the UK government.

Bharti is applying voluntarily for clearance although the threshold for this type of transaction is 25 per cent, the group said.

A Bharti Enterprises’ statement to the London Stock Exchange also made clear that it has “no intention” of making a bid to take over BT.

Details of the sums involved were not disclosed, although New Street Research analysts quoted by the Telegraph, said the 9 per cent stake was worth about £980 million (€1.15 nillion).

It is no secret that Patrick Drahi’s telecommunications and media company Altice, is burdened by a €60 billion debt pile and has been in crucial talks with lenders over the last few months.

The company has been hit by rapidly-increasing interest rates and is also having to handle accusations of corruption that triggered a criminal investigation in Portugal.