BT Group Shares Surge as Bharti Global Agrees Deal to Acquire 24.5% Stake

BT Group's (LON: BT.A) share price jumped by more than 6% at the open on Monday after Indian conglomerate Bharti Global announced a deal to acquire a 24.5% stake in the British telecom giant.

The investment, worth an estimated £3.2 billion, marks a significant vote of confidence in BT and the UK market. However, Bharti said in a statement it had no intention of making an offer to acquire the whole of BT, Britain's biggest broadband and mobile company.

Bharti Global, the investment arm of Bharti Enterprises, will purchase the shares from Altice UK through Bharti Televentures UK Ltd.

The acquisition will be made in two tranches, with an initial 9.99% stake acquired immediately and the remaining 14.51% pending regulatory approval.

Bharti has expressed full support for BT's strategy to expand fibre broadband infrastructure, roll out 5G technology, and enhance its consumer offerings.

The Indian firm highlights the UK's attractive investment climate and its own history with BT, having previously held a stake in Bharti Airtel. “The investment is a vote of confidence in the UK as an attractive global destination for investment, with a stable business and policy environment attractive for long-term investors,” they state.

Sunil Bharti Mittal, Chair of Bharti Enterprises, emphasised the long-term nature of the investment, stating, “BT has a strong portfolio of market-leading brands, high-quality assets and an experienced management team.”

Shravin Bharti Mittal, Managing Director of Bharti Global, added that BT is “poised for leadership in the telecom arena, especially home broadband services.”