Bharti Enterprises, the owner of Bharti Airtel, has acquired a 24.5% stake in BT, a British telecommunications company, with a total investment of around 3.2 billion pounds. This acquisition involved buying out BT’s top investor, Patrick Drahi, as his Altice group faced financial challenges. Bharti clarified that they have no intentions of acquiring the entire BT company, instead offering their support to BT’s current executive team and strategy, which focuses on building the country’s fiber network for sustainable growth.
The deal with Bharti sent BT’s share prices up by 6% in early trading, showcasing investor confidence in the acquisition. Bharti has already purchased a 9.99% stake in BT and is awaiting national security clearance from the government before acquiring the remaining 14.51%. The move marks the end of Drahi’s involvement with BT and provides a new opportunity for BT to focus on its future growth plans without the burden of high debts weighing the company down.
Bharti’s Chairman, Sunil Bharti Mittal, expressed optimism about BT’s prospects and emphasized that the acquisition was driven by a long-term view of the telecom industry. While BT’s shares have shown short-term gains, the company has been facing a decline in its share price over the long term. Bharti’s stake in BT is seen as a positive development by analysts, removing an overhang on the stock and signaling potential for future cooperation between the two telecom giants.
Despite concerns raised by Drahi’s previous investment in BT’s critical infrastructure, Bharti reassured that the deal reflects confidence in Britain’s business environment and policies. The acquisition serves as a vote of confidence in the country and its future, particularly under the new Labor government’s leadership. Bharti also highlighted its historical relationship with BT, as the British company had previously owned a stake in Bharti Airtel in the early 2000s.
Mittal clarified that Bharti did not seek a board seat at BT, indicating a hands-off approach to management. However, he mentioned having some ideas for potential strategic initiatives in the future. Overall, the acquisition of a significant stake in BT by Bharti represents a strategic move in the telecom industry, showcasing confidence in BT’s future growth and development. The deal signals a new chapter for BT as it navigates through challenges and focuses on expanding its network infrastructure for long-term sustainability.
