BT Group shares boosted as Indian billionaire becomes largest shareholder

BT Group (LSE:BT) shares gained around 7.5% in Monday’s dealing with the news that Indian billionaire Sunil Bharti Mittal, via the company Bharti Global, has become the UK telecoms firm’s largest shareholder.

Bharti has acquired a 24.5% stake in the company from French conglomerate Altice.

The investment by Bharti Global is seen as a continuation of a long-standing relationship, as BT had previously collaborated with the Indian firm.

“BT has enjoyed a long association with Bharti Enterprises, and I'm pleased that they share our ambition and vision for the future of our business,” BT chief executive Allison Kirkby said.

Kirkby meanwhile also described the investment as “a great vote of confidence”.

Analysts elsewhere noted that this sale alleviates previous concerns about a potential share overhang (as Altice was seen as a potentially motivated seller of the share), and therefore presented a risk of depressing BT’s price if a large number of shares were made available in market suddenly.

The transaction is subject to regulatory approval, with the final transfer of shares expected to be completed after clearance under the UK National Security and Investment Act.

In London, BT shares climbed 9.90p or 7.59% closing Monday’s session at 140.40p.