Bharti Global, the international investment arm of Bharti Enterprises, has announced an agreement to acquire a 24.5% stake in BT Group from Altice UK, the largest shareholder of the British telecommunications company. Altice UK is owned by telecom tycoon Patrick Drahi.
Bharti Enterprises, one of the world’s biggies in the telecommunications business, plans to initially buy a 9.99% stake in BT Group and later acquire the outstanding 14.51% subject to getting all required regulatory clearances. The deal assumes significance as it deepens a relationship started in 1997 when BT acquired a 21% stake in Bharti Airtel.
BT Group CEO Allison Kirkby said she was pleased with the investment, as it represented confidence in BT’s long-term value and strategy. She further posed that Bharti represents a strong record in the telecommunications sector and expressed enthusiasm about future collaboration.
Sunil Bharti Mittal, Chairman of Bharti Enterprises, said that the investment is a note of confidence in BT and the UK market. He also mentioned potential synergies to be reaped in areas like AI, 5G R&D, and core engineering between the two companies.
Bharti Global Managing Director Shravin Bharti Mittal termed the acquisition of “strategic value” as the group shares a very long-term relationship with BT. He expressed optimism regarding prospects opened by this considerable stake in BT Group.
The move comes as Drahi’s Altice group is dogged by issues over high debt levels, which has forced it to sell off this major stake in BT. Despite the acquisition, Bharti Enterprises said it has no intention of taking over the whole BT Group.
The deal marks a major move for Bharti Enterprises in terms of increasing its global footprint, more so in the telecommunications sector within the UK.
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Source: Moneycontrol
News Desk
