Bharti Enterprises is going to take a big step soon. Bharti Enterprises is going to buy stake in Britain’s largest broadband and mobile company BT Group. Telecom giant Sunil Bharti Mittal’s company will buy 24.5 percent stake in BT Group for four billion dollars.
The company has also issued a statement in this regard. According to the company’s 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. Apart from this, the company will buy the remaining stake after getting approval from the regulator. The company has not yet shared more information about this entire matter.
In this regard, market experts say that the deal could be around four billion dollars at a valuation of around US $ 15 billion for BT. Bharti, India’s second-largest telecom company with around 400 million subscribers, has had a relationship with BT in the past as well. BT held a 21 percent stake in Bharti Airtel from 1997 to 2001. The company is neither willing to make an offer for a complete acquisition of BT, nor does it want a place on its board of directors. Altice, an investment group controlled by billionaire Drahi, is exiting BT as it grapples with high 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 about one-third since Altice first became an investor.
Bharti said in a statement, “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…” BT had acquired 21 per cent stake in Bharti Airtel in 1997 and now Bharti’s move to acquire 24.5 per cent stake in this prestigious British company is a defining moment for the Indian telecom group. Bharti Enterprises Chairman Sunil Bharti Mittal said, “Bharti and British Telecom (BT) have a relationship of more than two decades. BT had two members on the board of directors of Bharti Airtel Limited from 1997-2001 and had a 21 per cent stake. Today is an important moment in the history of Bharti Group as we are investing in BT, which is a prestigious British company.”
Bharti Global Managing Director Shravan Bharti Mittal said, “We look at global investment opportunities in the world of technology, from digital infrastructure to software. We know BT well due to our long association with Bharti, so we are happy to have this opportunity to acquire a significant stake in the company.” He said that Bharti believes that BT is ready to lead in 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 recognize the long-term value of our business and this investment by Bharti Global is a big sign of confidence in the future of BT Group and our strategy.” Barclays Bank PLC acted as the sole financial advisor in connection with this transaction through its investment bank. Linklaters LLP acted as legal advisor for Bharti Global.
