Bharti Enterprises has announced plans to acquire a majority stake in BT, the UK’s largest broadband and mobile provider.
Bharti will purchase approximately 24.5% of BT Group from its current top shareholder, Altice. The acquisition will be executed through Bharti Global, the international investment arm of Bharti Enterprises.
Sunil Bharti Mittal, Founder and Chairman of Bharti Enterprises, commented on the historical significance of this move: “Bharti and BT have an enduring relationship going back more than two decades wherein BT owned 21% stake along with two board seats in Bharti Airtel Limited from 1997-2001.
“Today marks a significant milestone in Bharti Group’s history as we invest in BT – an iconic British company.”
Bharti Global will utilise its subsidiary Bharti Televentures to complete the transaction. The deal will be carried out in two stages: an immediate purchase of a 9.99% stake, followed by the acquisition of the remaining 14.51% once necessary regulatory approvals are secured.
“This investment in BT aims to support the commitment of our honourable Prime Minister towards his vision in elevating and broadening the India-UK ties,” added Mittal.
In a move demonstrating its commitment to transparency and compliance, Bharti has voluntarily applied for clearance under the UK National Security and Investment Act.
Allison Kirkby, Chief Executive of BT Group, said: “We welcome investors who recognise the long-term value of our business, and this scale of investment from Bharti Global is a great vote of confidence in the future of BT Group and our strategy.”
The seller, Altice UK, is controlled by telecoms magnate Patrick Drahi and increased its investment in BT to 18% in 2021. This change in ownership marks a significant shift in BT’s shareholder structure and could potentially influence the company’s future strategy.
Mittal highlighted Bharti’s expertise in the sector: “Bharti’s own record of owning and operating telecom and broadband networks around the world is underpinned by placing customers, digital innovation, and operational efficiency at the heart of its business.”
Despite the substantial stake acquisition, Bharti has made it clear that it does not intend to make an offer to acquire BT Group in its entirety. This stance suggests that Bharti’s interest lies in strategic partnership rather than a complete takeover.
The move comes at a crucial time for BT, as the company continues to invest heavily in rolling out fibre broadband across the UK and expanding its 5G network. Bharti’s expertise in these areas, particularly through its investments in companies like OneWeb—a space communications firm that merged with Eutelsat in 2023—could prove valuable for BT’s future growth and innovation strategies.
“BT has enjoyed a long association with Bharti Enterprises, and I’m pleased that they share our ambition and vision for the future of our business. They have a strong track record of success in the sector, and I look forward to ongoing and positive engagement with them in the months and years to come,” added Kirkby.
This acquisition also highlights the growing interest of international investors in the UK’s telecoms sector. As the industry grapples with the challenges of infrastructure modernisation and the increasing demand for high-speed connectivity, such investments could play a crucial role in shaping the future of British telecoms.
The deal is subject to regulatory approvals, and both companies will be working closely with relevant authorities to ensure a smooth transition.
(Image Credit: BT)
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