Bharti Global made a big deal, will buy 24.5% stake in Britain’s largest mobile company
Telecom giant Sunil Bharti Mittal’s group will buy 24.5 percent stake in Britain’s largest broadband and mobile company BT Group for about four billion dollars. According to a company statement, Bharti Global, the international investment unit of Bharti Enterprises, will immediately buy 9.99 percent stake in BT Group from Patrick Drahi’s Altice and will acquire the remaining stake after getting the necessary regulatory approvals.
Though the company did not disclose the deal size, market experts say the deal could be worth around US$4 billion at BT’s valuation of around US$15 billion.
Bharti, India’s second-largest telecom company with nearly 400 million subscribers, has had a previous relationship with BT. BT held a 21 percent stake in Bharti Airtel from 1997 to 2001.
The company is neither willing to make an offer to acquire BT in its entirety, nor does it want a place on its board of directors. Altice, the investment group controlled by billionaire Drahi, is exiting BT as it grapples with more debt. It first took a stake in BT in 2021. It then acquired a 12 percent stake, increasing its stake to 24.5 percent.
BT shares have fallen by nearly a third since Altice became a first-time investor. “Bharti Global, the international investment arm of Bharti Enterprises, a leading Indian business group with world-class companies in telecom, digital infrastructure and space communications, has entered into an agreement to acquire 24.5 per cent stake in BT Group from Altice UK,” Bharti said in a statement.
BT had acquired a 21 per cent stake in Bharti Airtel in 1997 and now Bharti’s move to acquire 24.5 per cent stake in the iconic British company is a defining moment for the Indian telecom group.
Sunil Bharti Mittal, Chairman, Bharti Enterprises, said, “Bharti and British Telecom (BT) have a long association of over two decades. BT had two members on the Board of Directors of Bharti Airtel Limited from 1997-2001 and held a 21 per cent stake. Today is a significant moment in the history of Bharti Group as we invest in BT, an iconic British company.”
Shravan Bharti Mittal, Managing Director, Bharti Global, said, “We look at global investment opportunities across the technology space, from digital infrastructure to software. We know BT well from our long association with Bharti, so we are delighted to have this opportunity to acquire a significant stake in the company.”
He said that Bharti believes that BT is ready to lead the telecom sector, especially in home broadband services. Meanwhile, BT Group said in a separate statement that Bharti’s investment is a strong sign of confidence in the future of the British telecom company and its strategy.
BT chief executive Alison Kirkby said: “We welcome investors who recognise the long-term value of our business and this investment from Bharti Global is a great sign of confidence in the future of the BT Group and our strategy.”
