Indian Tycoon Sunil Bharti Mittal Joins BT Board Amid Strategic Shift

BT has announced the appointment of Indian telecoms magnate Sunil Bharti Mittal to its board as a non-executive director. This move marks a significant development for the FTSE 100 telecommunications stalwart as Mittal, founder and chairman of Bharti Enterprises, increases his oversight and influence over the group’s operational direction. Gopal Vittal, vice-chairman and managing director of Bharti Airtel, also joins the board, cementing the strategic partnership.

Mittal’s appointment comes under a newly established relationship agreement with Bharti Global, granting the group the right to appoint two directors as long as it maintains a stake of at least 20 per cent in BT, or one director if its holding remains above 10 per cent. Bharti Global, the international investment division of Mittal’s business empire, now controls a 24.5 per cent stake in BT following an acquisition from Altice, previously overseen by French-Israeli businessman Patrick Drahi.

Drahi’s position was largely composed of derivatives, offering significant voting power but without direct economic exposure. Mittal’s systematic conversion of derivatives into direct equity has elevated Bharti’s stake above the 20 per cent threshold, ensuring stronger representation and input at the highest level of BT’s governance. The company’s share price, having increased by 34 per cent over the previous year, saw volatility following the announcement as the technical momentum from derivatives conversion began to wane.

Commentators have observed that with a well-defined standstill agreement in place, Mittal is prevented from launching any hostile takeover bids for BT whilst retaining his seat on the board. This safeguard aligns with the UK government’s emphasis on BT’s status as a company of national importance. The recent changes coincide with a renewed focus under chief executive Allison Kirkby, who is striving to strengthen investor confidence through robust cost controls and major investment in Openreach, targeting broadband for 30 million homes by decade’s end.

The expanded board presence represents Mittal’s declaration of long-term strategic intent. A source close to the businessman describes the move as a way to gain intimate knowledge of BT’s day-to-day business and to work with BT’s leadership on pioneering strategy and service excellence. Kirky and Mittal have reportedly convened several times to foster collaboration and share best practice between BT and Bharti’s telecommunications operations.

BT, privatised in the 1980s, has continued its evolution through the ownership of mobile network EE and a joint venture in sports broadcasting with Warner Bros Discovery. The newly strengthened board is set to play a pivotal role as BT navigates the dynamic landscape of the UK telecoms sector and seeks to secure its position as a market leader. Investors and markets will be closely monitoring the next steps in this influential partnership.