Airtel Deal: Bharti Global makes a big deal, will buy 24.5 percent stake in Britain's largest mobile company

Telecom giant Sunil Bharti Mittal's group will buy a 24.5 percent stake in Britain's largest broadband and mobile company BT Group for about four billion dollars. According to the company's statement, Bharti Global, the international investment unit of Bharti Enterprises, will immediately buy a 9.99 percent stake in BT Group from Patrick Drahi's Altais and will acquire the remaining stake after getting the necessary regulatory approval.

Although the company did not disclose the size of the deal, market experts say that at BT's valuation of around US $ 15 billion, the deal could sit around four billion dollars.

Bharti, India's second-largest telecom company with about 400 million subscribers, has had a previous relationship with BT. BT held a 21 percent stake in Bharti Airtel from 1997 to 2001.

The company is neither willing to make an offer to acquire BT completely, nor does it want a place on its board of directors. Altice, the investment group controlled by billionaire Drahi, is exiting BT as it grapples with debt. It first took a stake in BT in 2021. It then acquired a 12 percent stake, taking its stake to 24.5 percent.

BT shares have fallen by about a third since Altice first became an investor. Bharti said in a statement, "Bharti Global, the international investment arm of Bharti Enterprises, a leading Indian business group with world-class companies in telecom digital infrastructure and space communications, has entered into an agreement to acquire 24.5 percent stake in BT Group from Altis UK."

BT had acquired a 21 percent stake in Bharti Airtel in 1997 and now Bharti's move to acquire a 24.5 percent stake in this prestigious British company is a defining moment for the Indian telecom group.

Bharti Enterprises Chairman Sunil Bharti Mittal said, "Bharti and British Telecom (BT) have a long relationship of more than two decades. BT had two members on the board of directors of Bharti Airtel Limited from 1997-2001 and had a 21 percent stake. Today is a significant moment in the history of Bharti Group as we are investing in BT, which is a prestigious British company." Bharti Global Managing Director Shravan Bharti Mittal said, "We look at global investment opportunities in the technology space, from digital infrastructure to software. We know BT well due to our long association with Bharti, so we are delighted to have this opportunity to acquire a significant stake in the company."

He said Bharti believes that BT is ready to lead the telecom sector, especially in home broadband services. Meanwhile, BT Group said in a separate statement that Bharti's investment is a strong sign of confidence in the future of the British telecom company and its strategy.

BT Chief Executive Alison Kirkby said, "We welcome investors who recognize the long-term value of our business and this investment by Bharti Global is a big sign of confidence in the future of BT Group and our strategy."

Barclays Bank PLC acted as the sole financial advisor in connection with this transaction through its investment bank. Linklaters LLP acted as legal advisor to Bharti Global.