Bharti Enterprises Expands into UK Telecom Market with Major Stake in BT Group
News Mania Desk/Agnibeena Ghosh/14th August 2024
Bharti Enterprises, led by Sunil Bharti Mittal, has made a significant move into the UK telecom market by acquiring a 24.5% stake in British Telecom Group Plc (BT), the UK’s leading provider of mobile and broadband services. This acquisition, executed through Bharti Televentures UK Ltd—a subsidiary of Bharti’s global investment arm—marks a notable expansion for the company into one of the world’s most established telecom sectors.
While the specific financial details of the acquisition remain undisclosed, analysts estimate the deal to be valued around USD 4 billion, based on BT’s market valuation of approximately USD 15 billion. The purchase will be completed in two phases: an initial acquisition of 9.99% of BT’s issued capital, followed by the remaining 14.51% once regulatory approvals are secured.
Bharti Enterprises’ entry into the UK market through this investment is a strategic move aimed at tapping into the advanced telecom infrastructure and market opportunities in Britain. Notably, this investment is separate from Bharti Airtel, Bharti Enterprises’ flagship telecom company in India. The new venture underscores Bharti’s commitment to expanding its global footprint and exploring synergies in emerging technologies.
In a statement released on Monday, Bharti Enterprises clarified that the shares will be acquired through Bharti Televentures UK Ltd, a wholly owned subsidiary of Bharti Global. The company has entered into a binding agreement with Altice UK to acquire the initial 9.99% stake, with the remaining 14.51% to follow after receiving necessary regulatory clearances.
The historical context of this acquisition is also significant. From 1997 to 2001, BT held a 21% stake in Bharti Airtel. This previous relationship lays a foundation for potential future collaboration, particularly in innovative fields such as artificial intelligence (AI), 5G research, and core engineering.
Sunil Bharti Mittal, Chairman of Bharti Enterprises, emphasized the strategic importance of this investment, stating, “This investment in BT aims to support our Honorable Prime Minister’s vision in elevating and broadening India-UK ties. Bharti’s record of owning and operating telecom and broadband networks globally is built on a foundation of customer focus, digital innovation, and operational excellence.”
This acquisition not only signifies Bharti Enterprises’ growing influence in the international telecom market but also reflects a broader trend of Indian companies increasing their presence in global markets. The strategic partnership with BT is expected to enhance Bharti’s capabilities in cutting-edge technologies and foster deeper India-UK economic ties.
As Bharti Enterprises embarks on this new venture, the telecom industry will be watching closely to see how this move influences both companies’ future strategies and the broader market dynamics.
