BAT to sell 3.5% stake in ITC via block deal
BAT Plc on Tuesday said in a statement that its wholly-owned subsidiary Tobacco Manufacturers (India) Ltd will sell around 3.5% stake in ITC Ltd to institutional investors by way of a block deal and has launched the process.
BAT said after the completion of the proposed block deal, BAT will continue to remain a significant shareholder of ITC with around 25.5% holding. BAT wanted to have more than 25% shareholding in ITC to have a strategic influence and veto rights in the company, chief executive Tadeu Marroco had said in December.
At present, BAT owns around 29.01% stake in ITC Ltd through three entities — Tobacco Manufacturers, Rothmans International Enterprises, and Myddleton Investment Company, with the first one alone holding around 23.87%. BAT said it intends to sell up to 436,851,457 ordinary shares in ITC “by way of an accelerated bookbuild process (the block trade), subject to customary closing conditions.”
Even after the completion of the deal, BAT will continue to be ITC’s largest shareholder second only to Life Insurance Corporation of India which owns 15.2%.
BAT said it intends to use the net proceeds of the block deal to buy back BAT shares over a period ending December 2025, starting with £700m in 2024. «We will continue to allocate operating cash flow to fund investment in our transformation and to further deleverage,» it said.
Marroco said in Tuesday’s statement that he is confident that ITC under the current management will “continue to create further value” for its shareholders.
“We look
