Bharti Airtel parent to acquire 24.5% stake in British telco BT group

Bharti Global is set to acquire a 24.5% stake in British telecom giant BT Group through its overseas subsidiary. The deal, reached with Altice UK, a telecommunications and mass media multinational, will make the international investment arm of Airtel's parent firm, the largest shareholder in BT Group and a major player in the British telecom sector.

The shares will be acquired through Bharti Televentures UK Ltd., a wholly owned subsidiary of Bharti Global. The firm will first purchase a 9.99% stake in BT Group, with the remaining 14.51% to follow upon receiving regulatory approvals.

Bharti Global clarified on Monday that it does not intend to acquire the entire BT Group, Britain’s largest broadband and mobile provider. The company, led by Sunil Bharti Mittal, also stated it had not sought a board seat.

While the size of the deal has not been revealed yet, this is not the first time the company has made investments in the UK. Bharti Global owns a majority stake in OneWeb, a space communications company that merged with Eutelsat in 2023.

"Bharti and British Telecom (BT) have an enduring relationship going back more than two decades wherein BT owned 21% stake along with 2 more board seats in Bharti Airtel Limited from 1997-2001," said Sunil Bharti Mittal, Chairman of Bharti Enterprises.

“This investment in BT Group PLC aims to support the commitment of our Honourable Prime Minister towards his vision, in elevating and broadening the India-UK ties,” Mittal added.

This investment follows the recent UK-India Technology Security Initiative, announced during UK Foreign Secretary David Lammy's visit to India, which aims to enhance collaboration in critical and emerging technologies, including telecom.

Barclays Bank PLC served as the sole financial advisor and Linklaters LLP was the legal advisor to Bharti Global for the transaction.

“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," said Allison Kirkby, chief executive officer.

Bharti expects the investment to foster new synergies between the UK and India in telecom sectors like AI, 5G R&D, and core engineering, enhancing collaboration on industry best practices and emerging technologies.

"Delighted Bharti Global of India is investing in 24.5% of the shares of UK's BT Group. This will support BT's plans to build fibre, roll out 5G and develop services. This vote of confidence in India-UK is a great first step after the Technology Security Initiative,” the Indian High Commissioner to the UK, Vikram Doraiswami, posted on social media platform X following the announcement.

Reportedly, one of the largest outbound deals by an Indian company, the transaction price is close to BT Group’s current market value. The country’s second-largest telecom operator’s market capitalisation stands around Rs 8.26 lakh crore, significantly surpassing BT Group's Rs 1.39 lakh crore.

BT Group is a UK-based fixed and mobile telecommunications and related digital services provider. As of March 2024, Deutsche Telekom's T-Mobile Holdings Limited holds a 12.06% stake in BT, while BlackRock Inc. holds 4.73%.