Bharti hopes that this strategic investment will further help create new synergies in the telecom sector. Image: X@bhartinews
Bharti Enterprises is set to acquire a 24.5 per cent stake in British telecommunications major BT Group plc, a move which will give the Indian telecom giant a foothold in the British telecom sector.
Bharti Global, the international investment arm of Bharti Enterprises, will pick up 24.5 per cent of the issued share capital of UK-based fixed and mobile communications provider BT Group plc from Altice UK, the company said in a stock exchange filing on Monday.
Altice UK is part of Altice Europe, another telecom and mass media company.
The shares will be purchased through Bharti Global-owned Bharti Televentures. There will be an immediate purchase of 9.99 per cent stake, while the balance 14.51 per cent stake will be acquired post requisite regulatory clearances.
Bharti hopes that this strategic investment will further help create new synergies in the telecom sector between both countries in the areas of Artificial Intelligence(AI), 5G Research & Development, and core engineering amongst other areas, it said.
“Bharti and British Telecom (BT) have an enduring relationship going back more than two decades wherein BT owned 21 per cent stake along with 2 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 (Narendra Modi) towards his vision in elevating and broadening the India-UK ties,” Bharti Enterprises Chairman Sunil Bharti Mittal said.
Broadband play
The BT Group provides fixed, mobile and converged connectivity solutions to consumers, small, medium and large businesses, public sector organisations and other communications providers. This includes broadband, mobile, TV, networking and IT services. It also has a larger portfolio of other products and services across handsets, gaming and insurance.
“We review global investment opportunities in the world of technology from digital infrastructure to software. BT is well known to us from the long association with Bharti, so we are pleased to have this opportunity to acquire a significant stake in the company. We believe that BT is poised for leadership in the telecom arena, especially home broadband services,” said Shravin Bharti Mittal, Managing Director of Bharti Global.
Mittal is also the founder of Unbound, a long-term global tech investment fund.
Bharti Global has a significant record of long-term investments in the United Kingdom, including the resurrection of Bharti Enterprises-backed satellite communications company OneWeb. It merged with French satcom player Eutelsat in 2023.
First Published: Aug 12 2024 | 1:49 PM IST
