Bharti Enterprises, spearheaded by billionaire Sunil Bharti Mittal, has announced its intention to acquire a 24.5% share in British Telecom Group Plc, the largest provider of mobile and broadband services in the UK. The acquisition will be carried out by Bharti Televentures UK Ltd, a fully-owned subsidiary of Bharti Global, the international investment division of Bharti Enterprises. The stake will be purchased from Altice UK, which currently holds a 24.5% share in BT.
Bharti Televentures will initially acquire 9.99% of BT from Altice and will secure the remaining 14.51% once regulatory approvals are obtained. The exact financial details of the transaction have not been disclosed. Bharti Enterprises clarified that the funds for this investment are separate from those used by Bharti Airtel Limited or its subsidiaries.
As of the last closing price on the London Stock Exchange, Altice’s 24.5% stake in BT was valued at approximately £3.2 billion. Altice is controlled by Patrick Drahi, an Israeli-French telecom mogul who also owns the Sotheby’s auction house.
Mittal remarked, “Bharti and BT have had a longstanding relationship stretching over twenty years, with BT holding a 21% stake and two board positions in Bharti Airtel Limited from 1997 to 2001. Today represents a significant milestone for Bharti Group as we invest in BT, a renowned British institution.” He also emphasized that this investment aligns with the Indian Prime Minister’s vision of strengthening India-UK relations. He noted that Bharti’s global telecom and broadband operations are driven by a focus on customer service, digital innovation, and operational efficiency.
FTA Negotiations to Wrap Up Soon
India and the UK are nearing the conclusion of their free-trade agreement (FTA) negotiations, which began in January 2022. Fourteen rounds of discussions have been held, and the two countries are also negotiating a bilateral investment treaty.
Bharti aims to foster new synergies between India and the UK, particularly in artificial intelligence (AI), 5G research and development, and core engineering. The recent UK-India Technology Security Initiative, announced during UK Foreign Secretary David Lammy’s visit to India, is expected to bolster collaboration in critical and emerging technologies, including telecommunications.
BT Group CEO Allison Kirkby expressed enthusiasm about the investment, stating, “We appreciate investors who understand the long-term potential of our business. This substantial investment from Bharti Global is a significant endorsement of BT Group’s future and our strategic direction. BT has had a long-standing relationship with Bharti Enterprises, and I am excited about continuing this positive engagement. Bharti’s proven success in the sector aligns with our vision for the future.”