Sunil Mittal’s Bharti Group has successfully raised $1.8 billion in debt from Barclays Bank to fund its acquisition of a 9.9% stake in British Telecom (BT). This move marks the first step in Bharti’s plan to eventually acquire a 24.5% stake in BT, valued at approximately £3.2 billion ($4 billion).
Key Details:
- Initial Stake Purchase: Bharti Televentures UK Ltd, a Bharti Global-owned entity, acquired a 9.9% stake in BT on August 13.
- Further Stake Acquisition: Bharti plans to acquire an additional 14.51% stake after receiving necessary regulatory approvals, including clearance under the UK National Security and Investment Act.
- Financing Plans: In addition to the $1.8 billion loan from Barclays, Bharti may raise more debt and use cash reserves to fund the remaining stake purchase.
Bharti Group’s move to acquire a significant stake in BT is part of its broader strategy to strengthen its position in the global telecom sector. Sunil Bharti Mittal emphasized BT’s vital role in expanding broadband infrastructure in the UK, highlighting the long-standing relationship between Bharti and BT, dating back to BT’s previous investment in Bharti Airtel from 1997 to 2001.
Bharti has made it clear that it does not intend to acquire full ownership of BT, focusing instead on supporting the company’s efforts to enhance its networks and drive growth.
