In Short:
Bharti Global, part of Bharti Enterprises, has agreed to buy a 24.5% stake in BT Group Plc from Altice UK. The purchase will happen through Bharti Televenture UK Limited. This investment aims to boost collaboration in telecoms, AI, and 5G technology between India and the UK. Both companies view this as a significant step in their long-standing relationship.
NEW DELHI: Bharti Global, the international investment arm of Bharti Enterprises, has finalized an agreement to acquire a 24.5% stake in BT Group Plc from Altice UK, as confirmed by a media statement on Monday.
According to the statement, “Bharti Global is set to acquire approximately 24.5% of the issued share capital of BT Group plc from Altice UK.” The transaction will be executed through Bharti Televenture UK Limited, a wholly owned subsidiary of Bharti Global.
The acquisition involves a binding agreement where Bharti Televentures UK Limited will initially secure a 9.99% stake in BT Group, with the remaining 14.51% contingent upon obtaining the necessary regulatory approvals. The financial details of the transaction have not been disclosed.
Bharti anticipates that this investment will foster new synergies within the telecom sector between India and the UK, particularly focusing on advancements in AI, 5G research and development, and core engineering. The statement emphasizes the potential for collaboration on industry best practices and emerging technologies.
Reflecting on the historical relationship, Sunil Bharti Mittal, Chairman of Bharti Enterprises, stated, “This day signifies a pivotal moment in Bharti Group’s timeline as we invest in BT, an iconic British firm.” He further noted that this relationship has roots spanning over two decades during which BT held a 21% stake and two board seats in Bharti Airtel Limited from 1997 to 2001.
Allison Kirkby, CEO of BT Group, expressed, “We welcome investors who appreciate the long-term value of our enterprise. This sizable investment from Bharti Global is a significant endorsement of BT Group and our strategic direction.”
Barclays Bank PLC, through its Investment Bank, served as the exclusive financial advisor, while Linklaters LLP acted as the legal advisor for Bharti Global throughout this transaction.
In a recent development linking India and the UK, the UK Foreign Secretary, David Lammy, announced the UK-India Technology Security Initiative during his visit to India. This initiative aims to bolster cooperation in vital and emerging technologies across key sectors, including telecommunications.
Following this announcement, Vikram Doraiswami, Indian High Commissioner to the UK, took to social media platform X to express his approval, stating, “Delighted that Bharti Global of India is investing in 24.5% of the shares of the UK’s BT Group. This investment will contribute to BT‘s endeavors in building fiber networks, rolling out 5G, and enhancing services. This confidence in the India-UK partnership is an encouraging first step following the Technology Security Initiative.”
