BT Group PLC (GB:BT.A) today announced that India-based Bharti Global will acquire a significant stake in the British telecommunications giant from Altice UK. According to the company’s update, Bharti Global, the international investment branch of Bharti Enterprises, has secured a deal to acquire about 24.5% of BT Group’s issued share capital from Altice UK. BT Group shares gained over 6% as of writing.
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BT Group is the largest telecommunications company in the UK, with operations in 180 countries. Meanwhile, Bharti Enterprises is a leading Indian conglomerate that has a strong presence in telecoms, digital infrastructure, and space communications businesses.
Bharti-BT Deal Insights
As part of the deal, Bharti Enterprises stated that it would acquire a 9.99% stake from Altice immediately and the remaining stake after gaining the required regulatory approvals.
BT Group highlighted that this level of investment reflects strong confidence in its business. Bharti echoed this sentiment, adding that BT’s robust portfolio of leading brands, solid assets, and effective execution support long-term growth prospects.
Bharti and BT share a long history, with BT previously holding a 21% stake and two seats on Bharti’s board from 1997 to 2001.
Looking ahead, Bharti expects its investment to strengthen the synergies between India and the UK in terms of artificial intelligence (AI), 5G, and research and development (R&D), paving the way for additional collaborations on technologies.
Meanwhile, this acquisition signifies the end of Altice’s involvement in BT Group. The BT Group stake sale is Altice’s latest move to reduce its huge debt levels. Altice UK is a part of France-based telecom company Altice Europe N.V., founded by billionaire businessman Patrick Drahi.
Is BT Group a Good Buy?
According to TipRanks consensus, BT.A stock has received a Strong Buy rating based on five Buys and one Hold recommendation. The BT Group share price target is set at 217.50p, reflecting a 66.7% increase from the current trading level.
