Bharti Global Acquires 24.5% Stake in BT Group plc from Altice UK

Bharti Global, the international investment arm of Bharti Enterprises, has announced the acquisition of a 24.5% stake in BT Group plc from Altice UK. This move establishes Bharti Global as the largest shareholder in BT Group, a company that once held a 21% stake in Bharti Airtel. Bharti has already secured a 9.9% share in the UK’s leading fixed and mobile communications provider through a market transaction.

The total value of the deal is estimated at approximately $4 billion, based on BT’s current market valuation, pending regulatory and security clearances. This acquisition is part of Bharti’s strategy to invest in developed markets and strengthen India-UK business relations. The deal positions Bharti with a larger stake than Deutsche Telekom’s 12%, following a recent acquisition by Mexican billionaire Carlos Slim.

Sunil Bharti Mittal, Chairman of Bharti Enterprises, emphasized that the investment is not driven by short-term financial gains but by a long-term commitment to the telecom sector. “BT has a promising future, and our investment aims to enhance synergies and support strategic initiatives, including advancements in AI, 5G R&D, and core engineering,” Mittal stated. He highlighted that Bharti’s focus is on strategic growth rather than immediate returns, aligning with their goal to bolster India-UK ties.

The acquisition marks a significant expansion for Bharti Global into developed markets, having previously concentrated on regions like Africa, Bangladesh, Sri Lanka, and Seychelles. Despite the slower growth potential in Europe and the UK, Mittal believes the substantial revenue and EBITDA from BT provide an opportunity to increase efficiency and free cash flows over time.

Mittal also noted that the stability in Bharti’s Indian operations, following significant investments and intense competition, enabled the group to pursue this opportunity without affecting its domestic business. The acquisition has been positively received by both British and Indian authorities. Commerce and Industry Minister tweeted, acknowledging the historic nature of the transaction and its significance in the context of strengthening India-UK business relations.

Deutsche Telekom CEO Timotheus Höttges expressed optimism about the deal, stating, “We look forward to collaborating with Bharti for the benefit of BT’s shareholders and customers.”

The acquisition reflects a strategic shift for Bharti, which typically focuses on operational roles. For now, Bharti is not seeking a board seat, though future engagements may be considered.