The billionaire founder of Indian business group Bharti Enterprises has joined the board of BT after paying £3.2 billion for a 24.5% stake last year.
Sunil Bharti Mittal, also chairman of Bharti Enterprises, and Gopal Vittal, vice chairman and managing director of Bharti Airtel, will join the board of BT Group plc as non-independent non-executive directors.
Bharti Global, the international investment arm of Bharti Enterprises – which comprises companies in telecoms, digital infrastructure and space communications – bought the shares from Altice UK, part of European multinational telecommunications and mass media company Altice, last August.
The shares were purchased through Bharti Televentures UK Ltd, a company established and wholly owned by Bharti Global. Bharti, which applied voluntarily for UK National Security and Investment Act clearance, said at the time that it had no intention of executing a full takeover.
Should its stake increase to 30% or more, it would be required to make an offer for the whole of BT, under UK rules.
BT previously owned a 21% stake in Bharti Airtel – along with two board seats – from 1997 to 2001.
Adam Crozier, BT Group chairman, said: “We’re delighted to welcome Sunil and Gopal to the board of BT. They bring significant experience and global perspectives in the telecoms industry, and we look forward to their contribution to the board and to the future success of BT Group.”
Sunil Bharti Mittal said: “I am delighted to be joining the board of BT, an iconic company delivering critical infrastructure and services for the UK. I look forward to working with chairman Adam Crozier, the board and CEO Allison Kirkby to drive forward the strategy to win in the market and deliver world-leading services for BT’s customers.”
Since Kirkby joined as chief executive in February last year – and began to execute a cost-cutting plan – BT’s share price has almost doubled. It up 34% over the last 12 months.
However the share price has dropped 3.5% in the first hour of trading today (writing at 9am).
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