India-based Bharti Global has received approval from the UK government to acquire a 24.5% stake in British telecom giant BT Group PLC (GB:BT.A). Initially announced in August, the deal saw Bharti Global, the investment arm of Bharti Enterprises, acquire a 9.9% stake from Altice UK. Bharti planned to acquire the remaining 14.51% stake after the regulatory approval.
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Key Parties Involved in the Bharti-BT Deal
BT Group is a telecommunications company in the UK, operating in 180 countries worldwide. Meanwhile, Bharti Enterprises is a leading Indian conglomerate that owns telecoms, digital infrastructure, and space communications businesses.
On the other side, the stake was acquired from BT’s largest shareholder at the time, Altice UK. It is part of France-based telecom company Altice Europe N.V., founded by billionaire businessman Patrick Drahi.
Bharti-BT Deal Highlights Confidence
BT Group emphasized that the investment from Bharti demonstrates strong confidence in its business. Bharti shared this view, noting that BT’s strong portfolio of top brands, valuable assets, and efficient execution underpin its long-term growth potential. With this stake, Bharti has become the majority shareholder in BT Group. Bharti also owns Airtel, a leading telecom company in India.
Looking forward, Bharti expects that this investment will enhance the synergies between India and the UK in areas such as AI, 5G, and R&D, opening the door for further collaboration on advanced technologies.
BT Strengthens Position in National Security
The £3.2 billion deal was approved following a comprehensive national security review and assurances from the companies. Bharti confirmed in August that it has no plans to make an offer to acquire BT Group and is bound by the restrictions of the UK Takeover Code.
Additionally, BT will establish a national security committee to monitor strategic activities that affect the UK’s national security. The government assured that it would lower security risks because BT plays a crucial role in supporting government telecom projects and protecting the country’s cybersecurity.
Is BT Group a Buy or Sell?
According to TipRanks consensus, BT.A stock has received a Moderate Buy rating, based on one Buy and one Hold recommendation. The BT Group share price target is set at 207.5p, reflecting a 38.6% increase from the current trading level.
Year-to-date, BT shares have gained 20%.
