New Delhi [India] August 12: Addressing a virtual press conference, post announcing taking a 24.5 per cent stake in BT Group from Altice UK by Bharti Global, Bharti Enterprises Chairman Sunil Bharti Mittal says the stake will make them the single largest shareholder of the company.
Sunil Bharti Mittal said, "This 24.5 per cent block makes us the single largest shareholder in this iconic company. And as you know, this is a very large block. If you go back in time, Singtel had bought that kind of stock in our company. BT had bought 21 per cent in 97. So these are very strategic blocks which are seen as blocks with great degree of shareholder involvement. and that's what we want to keep at this point in time".
Timotheus Hottges, CEO, Deutche Telecom which has 12 per cent stake in BT, said, "We see this as a positive step for BT. We have a long and good working relationship with Bharti. So we are looking forward to work together with Bharti in the Board of Directors for the sake of BT shareholders and customers."
Without disclosing the size of the buyout, Mittal says it's a very attractive buy as UK and European telecom companies are trading at low multiples so it will be a very good investment in the long run. The size of the company is 21 billion pounds with sales revenue at about USD 25 billion.
Mittal said the investment will have no direct impact on the company's telecom operations in India but best practices sharing can always take place.
"Best practice sharings can always take place given there is a common shareholder on both sides. But really, Airtel at the moment is not engaged in this particular process of seeking any technology or any help from BT. I mean, there are two independent investments. But I'm sure given the commonality of shareholding, there will be discussion and ideas will be taken from both sides", said Mittal.
Speaking about its satellite broadband venture, Mittal said DoT and TRAI approval is awaited but process is on. OneWeb is partnering with telecom companies around the globe to provide services in areas where there is lack of connectivity. SNP's are ready one at South and another at Gujarat. This will provide satellite coverage to the entire country and the SAARC countries. It's ready to go now.
"Satellites are all, you know, spinning around India all the time. We have done some tests in Himalayas, in deserts, proof of concepts to the Army, to the Navy, to other government agencies that have been shown. It's all ready to go. As you know, we are now just waiting for a signal from the DOT", Mittal said.
Indian businesses were under pressure but with tariff hikes, government support and 5G launches it has turned around remarkably well. Bharti is now ready to make investments after a long gap post its Africa acquisition.
"We have a tremendous amount of encouragement even from the government in various quarters to emerge as a telecom MNC out of India. We operate in 16 countries already and therefore adding UK and starting a chapter in Europe, European continent is the next step towards that. Will more companies come and invest outside? My view is yes. You're seeing the steel, the paint, a lot of activities happening" said Mittal
Mittal said although there is no global expansion on cards but it can't be ruled out either
He stated, "With a very large cash flow and India's capex, you know, becoming smaller within the size of its EBITDA, there could be opportunities globally for Airtel to go. So I will not rule that out."
"Whenever Airtel makes a move, it needs to not just be an investor, it needs to be an operator. You know, in this particular case, this was an investment, we are not going and operating BT, we are backing their management and their strategy." Mittal added.
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