Sunil Bharti Mittal, the Indian telecom czar known for his success with Bharti Airtel, is expanding his global footprint with a major investment in the UK. Bharti Global, the international investment arm of Bharti Enterprises, will be acquiring a 24.5% stake in BT Group, Britain’s largest broadband and mobile company. This deal will cost Bharti Global around $4 billion, or Rs 33,580 crore.
The acquisition will be carried out in two phases. Bharti Global will immediately acquire 9.99% of BT Group from Patrick Drahi’s Altice. The remaining stake will be acquired after necessary regulatory approvals are obtained. Although the exact financial details haven’t been disclosed, market watchers estimate the deal to be around $4 billion based on BT’s current valuation of roughly $15 billion.
This isn’t the first time Bharti has had dealings with BT. From 1997 to 2001, BT owned a 21% stake in Bharti Airtel. It’s important to note that Bharti isn’t interested in acquiring the whole of BT or seeking a board position. Altice, an investment conglomerate controlled by billionaire Drahi, is exiting BT due to its struggles with high debt. Altice initially acquired a 12% stake in BT in 2021, later increasing it to 24.5%. This investment marks a significant strategic move for Bharti Global, solidifying their presence in the international telecom market.
