NEW DELHI: Bharti Global, the international investment arm of Bharti Enterprises, will purchase 24.5% stake in British Telecom Group, the UK’s largest mobile and broadband services provider, for an undisclosed amount. The shares will be acquired via Bharti Televentures UK Ltd, a wholly-owned subsidiary of Bharti Global.
It has entered a binding agreement with Altice UK to acquire 9.99% stake in BT Group’s issued capital immediately, with the remaining 14.51% stake to be acquired after receiving regulatory clearances. The news of stake sale saw British Telecom shares zooming 7% to 140 pound a piece. Bharti Airtel share prices on Monday closed at Rs 1,463.4, down 70 paise from the previous close.
“Bharti and British Telecom (BT) have an enduring relationship going back more than two decades wherein BT owned 21% stake along with 2 board seats in Airtel from 1997-2001. Today marks a significant milestone in BT’s history as we invest in BT - an iconic British company. This investment aims to support commitment of our Prime Minister towards his vision in elevating and broadening India-UK ties,” said Sunil Bharti Mittal, Chairman, Bharti Enterprises.
Barclays Bank served as the sole financial advisor, while Linklaters LLP acted as legal advisor to Bharti Global for the transaction. Bharti hopes this investment will help create new synergies in the sector between both countries in the areas of AI and 5G R&D and core engineering among others, offering potential to collaborate on industry best practices and emerging technologies.
Shravin Bharti Mittal, managing director of Bharti Global, said BT’s potential for leadership in the telecom sector, especially in home broadband services, will help the telco. This development aligns with the UK-India Technology Security Initiative, announced during the recent visit of UK foreign secretary Rt. Hon David Lammy to India, which aims to expand collaboration in emerging technologies across priority sectors, including telecom.
Allison Kirkby, CEO, British Telecom, 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.” With this, Bharti Enterprises joins the league of Indian companies acquiring firms in the UK, alongside prominent groups like Tata, Mahindra & Mahindra, Welspun, and TVS.