After BT, Bharti may consider more opportunities in Europe: Mittal

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Tata Motors Ltd, while Tata Steel Ltd’s acquisition of Corus has become a burden for its Indian parent. Bharti comes a full circle with the acquisition of BT shares, Mittal said, as the British group had held a 21% stake in Bharti Airtel between 1997 and 2001, and now the Bharti group has become the single largest shareholder in the entity.

Mittal clarified that the Bharti group was not buying any additional stake and it did not have any intention to manage the telecom company, which is also the reason behind it not taking any seats on the board. Mittal noted that the stake buy was a strategic move and financially attractive since European and UK telcos were trading at low multiples.

Having gained a foothold in Europe with BT, Mittal said the group’s entry into the continent will be strategic and that it was looking at more investment opportunities in the European telecom market. He added that any telecom-related expansion will be done through Airtel, and that the carrier will continue to strengthen its position in India over the next two to three years before it begins to relook at opportunities outside India.

“Whenever Airtel makes a move, it needs to not just be an investor, it needs to be an operator. In this particular case, this was an investment, we are not going and operating BT, we are backing their management and their strategy." He noted that during that time frame, the capex requirements of the telecom company will go down and cash flow will become stronger, and at that time, the board may look at global opportunities.

“All the investments we have made into Airtel are now yielding great rewards in terms of stock price, market cap, and strong cash flows. This gives us the confidence and opportunities to look