No Airtel Involvement In Bharti's $4-Billion Investment In BT Group, Says Sunil Mittal
He confirmed that Bharti doesn't plan to acquire more stake, while predicting that the stock will appreciate in the coming days.
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Bharti Enterprises Ltd.'s latest investment in UK firm British Telecom does not involve Airtel, which operates in India, said Chairperson Sunil Bharti Mittal in an interview.
"This is a good and long-term investment to improve BT Group’s performance and pooling ideas to enhance the company’s operations," he said, adding, "We have had investments in the UK for a long time. This is a move to put more of our capital into the UK, a country that has a deep and close relationship with India."
Bharti Enterprises' latest investment aligns with its broader strategy of expanding the global footprint while leveraging its strong foundation in India, Mittal said.
Bharti Enterprises Ltd. announced on Monday a significant investment in British telecommunications giant BT Group Plc.
The acquisition, valued at approximately $4 billion, will make Bharti the largest shareholder in BT Group with a 24.5% stake.
The shares will be purchased through Bharti Televentures UK Ltd., a wholly-owned subsidiary of Bharti Global. This move further cements Bharti's presence in the global telecom market.
"It’s very difficult to buy such stock in the market. It takes a long period of time and there are uncertainties of pricing and finding a willing seller," Mittal said.
He also clarified that this move by Bharti Enterprises does not involve Airtel, which operates in India. "This is a good and long-term investment to improve BT Group’s performance and pooling ideas to enhance the company’s operations," he said.
Mittal also said that the Indian government is encouraging companies to go global and helping accelerate the process.
The stake in BT Group is valued near the market price of the company, which is currently estimated at $14 billion, Mittal said. The funding for this acquisition is being managed by Bharti Global, which has assets and investments across various sectors, he added.
While he confirmed that Bharti has no plans to acquire more than the 24.5% stake, he expressed optimism about the future of BT Group, predicting that the stock will appreciate in the coming days.
"Airtel has been busy building India, and in two-to-three years, Airtel’s cash profile will be pretty strong. Who knows what the board will decide at that time? There could be global opportunities for it," Mittal hinted.
