Bharti Enterprises to acquire 24.5% stake in BT worth $4 bn

New Delhi: Bharti Global, the international investment arm of Sunil Bharti Mittal’s conglomerate Bharti Enterprises, has announced plans to acquire a 24.5 per cent stake in BT Group, Britain’s largest broadband and mobile company. The deal, estimated to be worth around $4 billion, marks a significant move in the telecom sector and strengthens ties between India and the UK.

The acquisition will be executed in two phases. Bharti Global will immediately purchase a 9.99 per cent stake from Patrick Drahi’s Altice, with the remaining shares to be acquired after securing necessary regulatory approvals. This investment comes at a time when BT’s shares have fallen by about a third since Altice first became an investor in 2021.

Sunil Bharti Mittal, Chairman of Bharti Enterprises, highlighted the long-standing relationship between Bharti and BT, dating back to 1997 when BT owned a 21 per cent stake in Bharti Airtel. Mittal emphasised that this investment aligns with Prime Minister Narendra Modi’s vision of enhancing India-UK ties, particularly in the technology sector.

The deal is expected to create new synergies in the telecom sector between India and the UK, focusing on areas such as AI, 5G R&D, and core engineering. Bharti Global sees potential for collaboration on industry best practices and emerging technologies.

BT Group’s CEO, Allison Kirkby, welcomed the investment, calling it a “strong vote of confidence” in the company’s future and strategy. She expressed enthusiasm about the ongoing positive engagement with Bharti Enterprises. The transaction was facilitated by Barclays Bank PLC as the sole financial advisor and Linklaters LLP as legal advisor to Bharti Global.