Bharti Global, the international investment arm of Bharti Enterprises, is making a substantial move in the UK telecom sector by acquiring a 24.5% equity stake in BT Group. This strategic investment positions Bharti Global as the largest shareholder in BT Group, the UK’s second-largest telecom company by market value and subscriber count. The deal, valued at approximately $4 billion, is being executed through a mix of cash and debt, with shares purchased from Altice UK, owned by billionaire Patrick Drahi.
Bharti Global’s acquisition is notable for several reasons. Firstly, it reflects a significant financial commitment and strategic alignment with BT Group, which is valued at around $16.6 billion on the London Stock Exchange. The investment involves acquiring 9.99% of BT Group’s issued capital immediately, with the remaining 14.51% pending regulatory approvals, which are expected to take up to five months. Bharti Enterprises Chairman Sunil Bharti Mittal and Shravin Mittal, Managing Director of Bharti Global, highlighted that this move aligns with broader strategic goals, including enhancing India-UK ties and exploring synergies in areas like artificial intelligence (AI), 5G research, and core engineering. The deal is also noteworthy in the context of historical relationships between Bharti and BT. Previously, BT held a 21% stake in Bharti Airtel from 1997 to 2001. The new investment reestablishes a significant connection between the two companies. This acquisition follows a period of scrutiny over foreign investments in UK infrastructure, notably when Altice’s ownership of BT prompted a national security review in 2022. Bharti Global has proactively submitted an application under the UK’s National Security and Investment Act to review the investment, aiming to address any potential concerns. In addition to this, the acquisition has garnered support from other major players in the industry. Deutsche Telekom, which holds a 12% stake in BT Group, has welcomed the move, expressing optimism about the potential benefits for BT’s shareholders and customers. The investment is expected to bolster BT’s position in the telecom sector, particularly in home broadband services, and strengthen Bharti Global’s footprint in the UK, complementing its existing investments in satellite communications and hospitality.
Bharti Global’s acquisition of a 24.5% stake in BT Group marks a significant development in both the telecom and investment landscapes. This strategic investment not only positions Bharti Global as a key player in the UK telecom sector but also reinforces the long-standing relationship between the Indian conglomerate and BT. By focusing on technological advancements and strategic synergies, Bharti aims to enhance its global footprint and contribute to the broader India-UK economic partnership. The deal is expected to create new opportunities for collaboration and innovation while navigating the complexities of regulatory and national security considerations.
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