Bharti Group raises $1.8 bn debt from Barclays for BT stake buy; may rope in more lenders

Bharti group raises $1.8 bn debt from Barclays for BT stake buy

Sunil Mittal’s Bharti Group has raised $1.8 billion in debt from Barclays Bank to facilitate the purchase of a 9.9 percent stake in British Telecom (BT), sources told Moneycontrol adding that the Bharti group is likely to raise more debt as it looks to buy further stake in the British telco.

On August 13, Bharti announced that it would acquire a 24.5% stake in BT for a sum of 3.2 billion pounds ($4 billion), from the British telco’s biggest shareholder Patrick Drahi’s Altice group.

An initial tranche of 9.9 percent was purchased by the Bharti group through Bharti Televentures UK Ltd - a company established and wholly owned by Bharti Global, on August 13, filing with the London Stock Exchange shows.

The balance 14.51 percent of BT's share capital to be acquired following receipt of applicable regulatory clearances, Bharti group said in a statement. Bharti is also applying voluntarily for UK National Security and Investment Act clearance.

“They have raised a $1.8 billion loan from Barclays to fund the acquisition. For the additional stake that they have to buy, they are yet to firm up their financing plans for it. They have some cash on their books and they will use that to part fund the remaining stake purchase, but they have also indicated to other lenders that they may raise some more debt,” said one of the sources cited above.

The Economic Times first reported the fundraise from Barclays on August 15.

Bharti Group and Barclays declined to comment.

Also Read: Bharti buys BT Group stake, joins Tatas, RIL on a growing list of Indian owners of British firms

In its statement Bharti had added that it has no intention of making an offer to acquire the company

“Bharti and BT have enjoyed a longstanding relationship - BT previously owned a 21% stake along with two board seats in Bharti Airtel Limited from 1997 to 2001,” Sunil Bharti Mittal, Chairman of Bharti Enterprises said in a statement.

“BT is playing a vital role to expand access to full-fibre broadband infrastructure for millions of people across the UK. 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,” he added.