According to the FT, Mittal is weighing the move, having privately expressed interest in expanding his involvement with BT, as he converts his existing holding into equity in the British telecoms giant.
BT’s shares rose 1.35% in early trading following the news, with Mittal’s potential increased investment seen as a boost for the company as CEO Allison Kirkby pursues aggressive cost-cutting and a sharper focus on the UK market.
Mittal’s Bharti Global secured a 24.5% stake in BT from Altice UK last November, becoming the largest single shareholder in the broadband and mobile provider.
His involvement with the telco appears to be for the long term, with the billionaire saying last year the brand’s “renewed focus on optimisation, strengthening networks and driving consumer growth” puts it well placed to deliver long-term value for investors
Since taking a stake in the brand, the billionaire has reportedly been getting hands-on with BT, engaging in strategy discussions with senior executives at the firm.
Any move by Mittal to increase his stake in BT would come with regulatory implications under UK law. Should his holding reach 30% or more, he would be required to make a mandatory takeover offer for the entire company.
In addition, surpassing the 25% threshold would trigger a national security review — a process the billionaire would have gone through upon his initial investment.
After a significant slump, BT’s financial situation is looking up having undergone significant restructuring led by Kirkby, which includes selling off non-UK-focused brands, such as its Irish data centre business and wholesale and enterprise business arm.
There’s also been a suggestion that BT may sell its global division, with Jon James appointed to lead a UK-focused BT Business in January — a move designed to allow BT Global Services CEO Bas Burger to concentrate on “optimising” the company’s international operations.
While it's been cutting parts of the business, one BT unit saved from the axe is its consumer brand, which was set to be shelved before an apparent U-turn last week.
Mittal isn’t the only one who seems to be on board with the company’s ongoing restructuring after senior BT executives recently reinvested dividends into company shares in a sign of confidence in the telco’s direction.
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