New Delhi: Bharti, the Indian telecom and tech giant behind Airtel, is set to become the largest shareholder in BT, the UK’s former leading telecom company. Bharti plans to buy a 24.5% stake in BT from Altice, a deal worth around $4 billion based on BT’s market value of about £13 billion ($16 billion) at the time. Bharti will first buy 9.99% of the stake and then acquire the rest once it gets the necessary regulatory approval.
Altice, which has faced financial difficulties due to its debt-heavy acquisitions and corporate scandals, gradually built its stake in BT between 2021 and May 2023. With BT’s share price dropping as tech and communication stocks have fallen, Altice seems to be selling off its assets, recently selling its media platform Teads to Outbrain for $725 million in cash and other payments, plus stock, in a deal valued at $1 billion.
In its statement, Bharti emphasized the potential for collaboration between the UK and India in the telecom sector, especially in areas like AI and 5G development. This move is seen as Bharti’s way of gaining advantages in a competitive industry where tech companies are finding new ways to provide communication services without relying on traditional telecom networks.
Sunil Bharti Mittal, Bharti’s founder and chairman, noted the historical connection between the two companies, recalling that BT once held a 21% stake in Bharti Airtel from 1997 to 2001. He called the current investment in BT a significant step for Bharti Group.
BT’s Chief Technology Officer, Allison Kirkby, welcomed Bharti as a long-term investor, praising their success in the telecom sector and expressing optimism about working together in the future.
