Bharti Group secures $1.8 billion loan from Barclays Bank: Report
Mumbai: Sunil Mittal's Bharti Group secured $1.8 billion in debt from Barclays Bank to fund the acquisition of a 9.9 percent stake in British Telecom (BT), Moneycontrol reported, citing sources.
The Bharti Group is expected to seek additional debt as it aims to further increase its stake in the British telecom giant.
On August 13, Bharti revealed its plan to purchase a 24.5% stake in BT for £3.2 billion ($4 billion) from Patrick Drahi’s Altice Group, BT’s largest shareholder.
The first 9.9 percent stake was acquired through Bharti Televentures UK Ltd, a subsidiary of Bharti Global, as indicated by a filing with the London Stock Exchange on August 13.
The remaining 14.51 percent will be acquired after securing necessary regulatory approvals, the Bharti Group said in a statement.
Bharti is also voluntarily applying for clearance under the UK's National Security and Investment Act.
“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 initially reported the fundraising from Barclays on August 15. Both Bharti Group and Barclays chose not to comment.
In its statement, Bharti clarified that it does not intend to make 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.
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