Major ITC Equity Shakeup: 12 million shares get reshuffled amid reports of British American Tobacco's divestment plans
ITC shares this week, citing individuals familiar with the matter. The London-based tobacco giant, which currently holds a 29.03% stake in ITC through three of its entities, has been in discussions with Bank of America Corp and Citigroup Inc.
regarding a potential divestment of ITC stock worth approximately $2 billion to $3 billion through block trades. Last month, BAT hinted at its intentions to monetise its stake in ITC to enhance its balance sheet flexibility.
Tadeu Marroco, BAT's Chief Executive, stated, "We continue to pursue all opportunities to enhance balance sheet flexibility and, as part of this, we regularly review our stake in ITC. We recognise that we have a significant shareholding, which offers us the opportunity to release and reallocate some capital." Marroco further added, "We have been actively working for some time on completing the regulatory process required to give us the flexibility to monetise some of our shareholdings, and we will update you at the earliest opportunity," as quoted by Bloomberg.
Shares of ITC closed 0.96% lower at ₹409.4 apiece on the Bombay Stock Exchange, while the benchmark BSE Sensex declined by 0.83%. The potential divestment by BAT, ITC's long-standing strategic partner, could have significant implications for the Indian company's future strategy and shareholder structure.
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