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June 13, 2021
5 minutes read

Markets: Patrick Drahi Invests $3B In UK Carrier BT

A certain shrewd telecom investor has made his latest big bet by buying a big stake in a UK carrier.…

A certain shrewd telecom investor has made his latest big bet by buying a big stake in a UK carrier. That investor is Swiss-based billionaire Patrick Drahi, who has bought a £2.2bn ($3.1bn) stake in the BT Group, the largest provider of broadband and mobile services in the UK.

Drahi invested in BT via Altice UK, a newly incorporated entity wholly owned by him. Altice is the name of the telecom giant he founded and built up with a series of big, highly-leveraged buyouts of telecom outfits globally. BT appears to be the latest leveraged bet in that regard.

Drahi’s investment in BT gives him a minority (12.1%) stake in the publicly-traded company, unlike his usual deals where he buys majority control of telecom firms. At that, he’s pledged not to launch a takeover bid for the company within six months, with some exceptions.

While we aren’t in Drahi’s head, we can speculate that he sees the rise of 5G technology in the UK as a major catalyst that’ll boost BT’s fortunes, and thus invested a hefty sum in the company. Already the largest UK carrier, the company has an early headstart in grabbing a slice of the country’s 5G market.

Maybe, the knack for spotting good telecom deals that got Drahi a $12bn fortune (Forbes estimate) would play well again in BT’s case. It’s up to time to tell.

Now as the biggest shareholder in BT, it’s unclear if Drahi will push for changes as an investor or take a laid back role in its management.

In a statement confirming Drahi’s investment, BT said it “welcomes all investors who recognize the long-term value of our business and the important role it plays in the UK.”

BT is the largest broadband service provider in the UK. It was formerly the UK government’s wholly-owned national carrier bearing the name British Telecom before it was sold to investors on the public markets.