With global telecom industry seeing consolidation, yet another news is adding up to the growing list of telecom acquisitions. India’s Bharti Enterprises, parent for the country’s second largest telecom company Airtel, is set to acquire a significant stake in British Telecom Group, the United Kingdom’s largest telecom operator. This acquisition involves purchasing a 24.5% stake in BT Group from its largest shareholder, Altice UK.
The deal is set to be executed through Bharti Global, the international investment arm of Bharti Enterprises, which is known to focus on telecom, technology, digital infrastructure, and space communications. Based on BT Group’s last closing stock price, the quantum of this deal would stand at £3.2Bn or nearly US$4Bn.
The acquisition is structured in two phases. Bharti Global will initially acquire a 9.99% stake in BT Group. The remaining 14.51% will be purchased following the necessary regulatory approvals, making Bharti Global the largest shareholder in BT Group.
Bharti has clarified that it has no intention of acquiring the entire company or seeking a seat on BT’s board of directors. Still, it is a significant step in Bharti’s global expansion strategy, particularly in the telecommunications sector.
BT Group, with its extensive broadband and mobile operations across the UK, represents a valuable asset for Bharti as it looks to enhance its global footprint. The investment also aligns with Bharti’s strategy of expanding its presence in key international markets while building on its existing operations in Africa and its investment in UK-based satellite communications company OneWeb, which merged with Eutelsat in 2023.
“This investment demonstrates the confidence we have in BT and in the UK. BT has a strong portfolio of market leading brands, high-quality assets and an experienced management team with a compelling strategy mandated by the BT Board to deliver value over the long term, which we fully support,” Sunil Bharti Mittal, Chair of Bharti Enterprises, commented on the matter.
Bharti’s investment in BT Group comes at a time when the UK government is actively seeking to enhance its economic and technological partnerships with India, especially in light of an impending FTA between the two countries. Bharti’s acquisition is expected to create new synergies between the UK and India in the telecom sector.
For Altice UK, the decision to sell its stake in BT Group is likely driven by the financial challenges faced by its parent company, Altice Group. The conglomerate, led by telecoms tycoon Patrick Drahi, has been grappling with high levels of debt, prompting it to sell off valuable assets to manage its financial situation. The sale of the BT stake, one of Altice’s most valuable holdings, is part of this broader strategy to reduce debt and stabilize its financial position.
