Bharti becomes BT's biggest shareholder

The firms announced the deal back in August, but needed to jump through various regulatory hoops to get it over the line. Specifically, Bharti said at the time that it would acquire a 9.99% stake from seller Altice with immediate effect, followed by the remaining 14.51% at a later date subject to receipt of regulatory approvals.

There was no reason to believe it would not get the green light from the relevant authorities, and clearly it has now done just that.

"We're delighted to have completed our investment into BT," said Sunil Bharti Mittal, Founder and Chairman of Bharti Enterprises, in a short statement confirming the transaction.

"Bharti has long recognised the enormous potential of the business," Mittal said. "BT's renewed focus on optimisation, strengthening networks and driving consumer growth makes it well placed to consolidate its position as a leading global telecoms company that delivers long-term value for investors."

It was clear from the start that this share acquisition is very much a financial investment and not an indicator of a future takeover bid from Bharti.

The UK incumbent's share price has rallied under relatively new CEO Allison Kirkby, who has been in the top office since early 2024; it has grown by over 17% since the start of the year. But there is likely still headroom, making the telco an attractive proposition for investors. Its stock price is roughly where it was in the days following the announcement of the Bharti deal – it was trading at 147 pence at the time of writing – but there have been ups and downs over the past three months.

Most recently, the firm's share price took a hit following the publication of its fiscal first half results a fortnight ago. Revenues were down and earnings flat, leading the telco to cut its outlook for the full year, which didn't sit particularly well with investors. However, there is change afoot – Kirkby's plan to focus on the UK and potentially offload the Global business is still a work in progress – so new investor Bharti is unlikely to be spooked at this stage.

The stake Bharti has now picked up belonged to cash-strapped French telecoms group Altice, which is on a wide-ranging debt-reduction drive.

None of the parties concerned disclosed the financial T&Cs of the deal, but Reuters in August noted the stake was – and presumably still is – worth £3.2 billion (around US$4 billion). That's a significant amount of money, for both buyer and seller.

Little wonder then that Kirkby categorised the deal as a vote of confidence in BT and in its strategic direction. The fact that Bharti has closed the deal only serves to reinforce that view.