Stake Sale
British American Tobacco arm to sell 2.3% stake in ITC via block trade
This story was originally published at 21:37 IST on 27 May 2025
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--British American Tobacco arm to sell 2.3% stake in ITC via block trade
--British American Tobacco to hold 23.1% share in ITC post arm's stake sale
MUMBAI – British American Tobacco p.l.c. Tuesday said its subsidiary Tobacco Manufacturers (India) will sell around 2.3% stake in ITC Ltd. The subsidiary will sell the stake to institutional investors through block trade, according to an exchange filing with the London Stock Exchange. The company did not mention when it will execute the trade.
Post the stake sale, British American Tobacco's stake in the company will come down to around 23.1%, the company said. As per the shareholding at the end of the March quarter, British American Tobacco held a 25.4% stake in ITC through three entities. Within these, Tobacco Manufacturers (India) held a 20.3% stake, Myddleton Investment Co. Ltd. 3.9%, and Rothmans International Enterprises Ltd. has a 1.2% stake in ITC.
"Proceeds will be used to progress to within the target 2-2.5x adjusted net debt/adjusted EBITDA leverage corridor (adjusted for Canada) by the end of 2026 and to continue our sustainable buyback programme by enabling an intended £200m (around INR 23 billion) increase in the share buyback to a total of £1.1bn (around INR 127 billion) in 2025," British American Tobacco said. In March 2024, British American Tobacco sold a 3.5% stake in ITC which helped the company initiate the share buyback in 2024 and 2025.
During the March quarter, ITC had reported a net profit of INR 195.62 billion on revenue of INR 184.94 billion. The net profit was sharply higher due to a one-time income of INR 151.79 billion, largely due to demerger of its hotels business. Tuesday, shares of ITC closed 2% lower at INR 433.90 on the National Stock Exchange. End
Reported by Anshul Choudhary
Edited by Akul Nishant Akhoury
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