Great vote of confidence: BT hails Bharti Group's investment

BT Group on Monday said that it views Bharti Global's acquisition of a significant stake in the British telecom company as a powerful endorsement of its future prospects and strategic direction.

Bharti Global, the international investment arm of Bharti Enterprises, has agreed to purchase approximately 24.5 per cent of BT Group's shares from Altice UK. This acquisition is valued at around £3.2 billion ($4 billion).

BT Group CEO Allison Kirkby hailed the investment as a major vote of confidence in the company's long-term strategy. "We welcome investors who recognize the enduring value of our business. This substantial investment from Bharti Global underscores their belief in BT's future and our strategic vision," Kirkby said.

Sunil Bharti Mittal, Chairman of Bharti Enterprises, described the acquisition as a "significant milestone" for the company. "We are excited to invest in such an iconic British company," Mittal stated.

Indian High Commissioner to the UK, Vikram Doraiswami, lauded the deal as a positive development for the India-UK technology partnership. He noted that the investment would enhance BT’s efforts in fiber construction, 5G deployment, and service development. "This is a significant advancement in the Technology Security Initiative," Doraiswami remarked.

UKIBC hails move 

The UK India Business Council (UKIBC) in London supported these sentiments. Managing Director Kevin McCole highlighted the investment as evidence of the strengthening UK-India technology collaboration. "This deal is a clear endorsement of the UK's digital economy and reflects the robust UK-India technology partnership," McCole said. He also expressed hope for more technology-driven agreements between the two countries and emphasized the role of the UK-India Free Trade Agreement in supporting these initiatives, particularly in intellectual property and cross-border data flows.

Timotheus Höttges, CEO of Deutsche Telekom, which also holds a stake in BT, welcomed the investment, citing its positive impact on BT. "We look forward to working with Bharti on the Board of Directors to benefit BT’s shareholders and customers," Höttges said.

According to Bharti Enterprises, Bharti Televentures UK has entered into a binding agreement to acquire approximately 9.99 per cent of BT’s shares immediately, with the remaining 14.51 per cent to be acquired pending regulatory approvals. This investment will position Bharti as BT’s largest shareholder.

Bharti aims to leverage this investment to create synergies between the telecom industries of India and the UK, focusing on areas such as AI, 5G research and development, and core engineering. This collaboration is expected to enhance industry best practices and drive advancements in emerging technologies.

While the precise financial details of the deal were not disclosed, the transaction is estimated to be worth around $4 billion, based on BT's valuation of approximately $15 billion.