Bharti has a longstanding relationship with BT, dating back to when the British telecoms firm held a 21% stake in Bharti Airtel Ltd., a subsidiary of the Indian conglomerate, between 1997 and 2001. Despite the significant stake acquisition, Bharti clarified that it does not intend to make a bid for the entire company.
Regulatory Considerations and Market Reaction
Bharti Enterprises’ acquisition of a 24.5% BT stake from Altice is contingent on regulatory approvals, which the company is currently pursuing. The acquisition highlights Bharti’s commitment to supporting BT’s strategy, particularly its goal of providing full-fiber broadband to 25 million premises by 2026.
Susanah Streeter, head of money and markets at Hargreaves Lansdown, remarked that Bharti’s investment reflects strong confidence in BT’s long-term potential. “Bharti Global is clearly confident that there is long-term untapped value in the group,” she noted. Streeter also suggested that Bharti may have been encouraged by signs that the costs associated with building 5G infrastructure have peaked.
Bharti To Buy 24.5% BT Stake From Altice : Bharti’s Global Expansion
This acquisition is part of Bharti’s broader strategy to expand its international presence. Bharti Airtel, one of the company’s flagship ventures, operates networks serving over two billion customers globally. Additionally, Bharti Global, the conglomerate’s international investment arm, has made several notable investments in the U.K., including a 21.2% stake in OneWeb, a space communications company.
Bharti To Buy 24.5% BT Stake From Altice : Financial Performance of BT
BT, listed on the FTSE 100 index, reported pre-tax profits of £8.1 billion ($10.3 billion) for the fiscal year ending in March, a 2.5% increase from the previous year. The company attributed this growth to its successful strategy of expanding full-fiber broadband coverage across the U.K. Following the announcement, BT’s shares rose 6.6% to 139.1 pence.
