Bharti Enterprises to Acquire 24.5% Stake in BT, Becoming Largest Shareholder

Indian conglomerate Bharti Enterprises announced on Monday its plans to acquire a 24.5% stake in British telecom giant BT, positioning itself as the company’s largest shareholder. The move is set to strengthen the ties between India and the U.K., particularly in sectors like artificial intelligence and 5G research, as the two nations continue to negotiate a free trade agreement.

Bharti Enterprises, which owns India’s second-largest mobile operator Airtel, will acquire the stake currently held by European telecom and mass media company Altice. The conglomerate will immediately take over a 9.99% stake through its investment arm, Bharti Global, with the remainder to follow after regulatory approvals.

“This marks a significant milestone in Bharti Group’s history as we invest in BT, an iconic British company,” said Sunil Bharti Mittal, chairman of Bharti Enterprises. He noted the longstanding relationship between Bharti and BT, recalling BT’s early investment in Airtel during its formative years.

BT’s new CEO, Allison Kirkby, welcomed the investment, calling it a “great vote of confidence in the future of BT Group and our strategy.”

While the exact amount of Bharti’s investment was not disclosed, the news led to a 7.14% rise in BT’s shares on the London Stock Exchange, with the company’s market value reaching $16.56 billion.

Bharti’s strategic move comes as Altice, owned by billionaire Patrick Drahi, seeks to reduce its $60 billion debt by selling assets. The sale of the BT stake offers some relief to Altice, which has been offloading assets, including a radio station and a news channel earlier this year.

An unnamed analyst suggested that Bharti’s share purchase indicates the group’s ambition to expand its global footprint, building on its existing presence in 17 countries across South Asia and Africa, and its investments in other international ventures, including satellite operator Eutelsat Group and Mauritius-based telecom company Emtel.

“We review global investment opportunities in the world of technology from digital infrastructure to software,” said Shravin Mittal, managing director of Bharti Global. He emphasized that Bharti’s long association with BT gives them confidence in the company’s future, particularly in the telecom and home broadband sectors.

Beyond telecommunications, Bharti Enterprises has diversified investments, including stakes in the Hoxton hotel chain, the Gleneagles resort, and various sectors in India such as insurance, real estate, and food.