BT, the U.K.’s former incumbent telecoms carrier, announced a significant new investment from Bharti, the Indian tech and telecoms giant. Bharti has agreed to purchase a 24.5% stake from Altice, making it BT’s largest shareholder. This move comes at a time when telecom companies are seeking to strengthen their positions in the ever-changing technology and communications market.
The deal, valued at around $4 billion based on BT’s market cap, will see Bharti initially acquire 9.99% of the stake, with the remainder to be completed after regulatory approval. Altice, the current owner of the stake, has faced challenges due to debt-led acquisitions and corporate scandals, leading to a decision to divest its holdings in BT.
For Bharti, this investment presents an opportunity to expand its presence in the telecom sector and leverage synergies in areas such as AI and 5G R&D. With the rise of new technologies and competition from tech giants, telecom companies like Bharti are seeking ways to stay ahead in the market.
BT, on the other hand, sees this investment as a vote of confidence in its business and strategy. Allison Kirkby, BT’s CTO, expressed excitement about the partnership with Bharti and highlighted the long-standing relationship between the two companies.
Interestingly, BT was once an investor in Bharti, holding a 21% stake in the company between 1997 and 2001. This latest deal marks a significant milestone for Bharti as it expands its global footprint and diversifies its investments.
As the telecom industry continues to evolve, partnerships and investments like the one between Bharti and BT will play a crucial role in shaping the future of communications. Both companies are optimistic about the potential for collaboration and growth in the coming years.
