Bharti Enterprises, led by billionaire Sunil Bharti Mittal, will buy a 24.5% stake in British Telecom Group Plc, the UK’s largest mobile and broadband services provider, the companies said in a statement Monday.
Bharti Televentures UK Ltd, a wholly owned subsidiary of Bharti Enterprises’s international investment arm Bharti Global, will buy the equity from telecom services provider Altice UK, which has a 24.5% stake in BT. Bharti Televentures will buy 9.99% of BT from Altice immediately, and the remaining 14.51% after receiving regulatory clearances.
The companies did not reveal the exact value of the deal. The funds were not connected to Bharti Airtel Limited or any of its subsidiaries, Bharti Enterprises clarified. Altice’s 24.5% stake in BT was worth about £3.2 billion based on the last closing price on the London Stock Exchange, according to the Financial Times. Altice is owned by Israeli-French telecom billionaire Patrick Drahi, who also owns auction house Sotheby’s.
Mittal said, “Bharti and BT have an enduring relationship going back more than two decades, wherein BT owned a 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.”
“This investment in BT aims to support the commitment of our hon’ble prime minister towards his vision in elevating and broadening the India-UK ties. 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,” he added.
FTA talks to conclude soon
India and the UK are expected to conclude their free-trade agreement (FTA) negotiations soon. The talks began in January 2022, and 14 rounds were conducted before the general elections in both countries. The two governments are also negotiating a bilateral investment treaty.
Bharti said the company hoped to create new synergies between the two countries in the areas of artificial intelligence (AI), research and development on 5G, and core engineering, among others.
The UK-India Technology Security Initiative was announced during the recent visit of UK foreign secretary Rt Hon David Lammy to India, the company said, adding that this would help expand collaboration in critical and emerging technologies across priority sectors, including telecom.
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. 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.”