Bharti's stake in BT a strategic long-term investment: Sunil Bharti Mittal

Bharti Enterprises Chairman Sunil Mittal on Monday described the company's acquisition of a 24.5 per cent stake in BT Group as a "good, long-term investment" and an "attractive buy," highlighting the British telecom giant's portfolio in-home broadband, fibre, mobile, and enterprise services.

Mittal, a leading figure in the telecom sector, expressed confidence in the future business prospects of BT. He noted that the current focus is on gaining a deeper understanding of the company and the UK market. However, he also hinted at the possibility of exploring further opportunities in Europe in the future.

Commenting on the decision to acquire the stake, which positions Bharti as the largest shareholder in the UK’s leading broadband and mobile company, Mittal stated, “I believe this is a very attractive buy. The UK and European telecom companies are currently trading at low multiples. Considering the cash flow expectations of BT, we see this as a solid investment for the long term.”

Earlier on Monday, Bharti Global, the international investment arm of Bharti Enterprises, announced its acquisition of the 24.5 per cent stake in BT Group from Altice UK. While the financial details were not disclosed, the transaction is estimated to be valued at around $4 billion.

Shravin Bharti Mittal, Managing Director of Bharti Global and Sunil Mittal's son, underlined that this was a “rare opportunity to acquire a stake of this size.”

"BT is compelling for several reasons. It offers a stable cash flow profile through its consumer and business operations, with additional growth expected from 'Openreach'. Our view is that the management has a clear vision and strong execution strategy, making this an opportune moment for investment," he said.

"We believe that in the coming years, BT's cash flow profile will see significant expansion, and the timing of this investment aligns perfectly with our international strategy," Shravin added.

(With PTI inputs)