Bharti Enterprises Invests in BT Group

Bharti Global, the international investment branch of Bharti Enterprises, has announced that it’s buying a 24.5 percent stake in BT Group. This deal makes Bharti the largest shareholder in the UK’s second-largest telecom firm, both in terms of market value and subscriber count.

The shares of BT Group are being acquired from billionaire Patrick Drahi’s Altice UK through a mix of cash and debt. While the financial details haven’t been revealed, Bharti Enterprises Chairman Sunil Bharti Mittal mentioned that the deal could be valued around $4 billion, considering BT’s current market value of $16.6 billion.

During a virtual press conference, Mittal explained that Bharti has no plans to make a full buyout offer for BT, nor will it try to get a seat on the board. He indicated that this partnership is strategic and not aimed at taking control of the company.

Bharti and BT have a historical relationship, with BT once owning 21 percent of Bharti Airtel in the late 90s and early 2000s. This new investment marks a significant step in rekindling that partnership.

Altice is part of Altice Europe, a French telecom and media company. There were concerns in 2022 when the UK government examined the implications of Altice’s ownership over national security, although it eventually concluded that it wasn’t a threat.

Mittal expressed confidence about Bharti’s new investment, stating that they submitted an application under the UK’s National Security and Investment Act to review their stake. He emphasized their existing partnership with the British government in sectors like satellite communications.

BT Group provides a variety of services including broadband, mobile, TV, and IT services to consumers and businesses. Its mobile network arm, EE, has about 21 million subscribers, making it second only to O2.

Bharti Global’s investment includes acquiring almost 10 percent of BT’s shares immediately, with plans to secure an additional 14.5 percent after obtaining regulatory approvals, which might take around five months. Mittal pointed out that this investment aligns with the vision of Indian Prime Minister Narendra Modi to strengthen India-UK relations.

Commerce and Industry Minister Piyush Goyal praised this acquisition as a significant achievement and thanked British officials for their support in enhancing business ties.

Deutsche Telekom, which already has a stake in BT, welcomed the news. Their CEO, Timotheus Höttges, expressed optimism about working together with Bharti for the benefit of BT’s shareholders and customers.

Mittal clarified that Bharti Airtel isn’t involved in this deal and that the focus is on collaboration in areas such as artificial intelligence and 5G development.

With a strong presence in the UK, Bharti Global has previously been involved in reviving the satellite communications firm OneWeb, which merged with Eutelsat in 2023.

Additionally, Bharti Global has investments in hospitality, owning popular properties like The Hoxton and Gleneagles in the UK.