BAT Plc Reduces Stake in ITC by $1.36 Billion: Strategic Reshuffling Unveiled
British multinational BAT Plc reduced its stake in ITC by 2.3% through a block deal valued at Rs 11,613 crore. Post-transaction, BAT's shareholding in ITC stands at 23.1%. The move supports BAT's financial flexibility for strategic investments. ITC shares declined following the sale announcement.
- Country:
- India
British American Tobacco Plc, a prominent multinational corporation, has reduced its shareholding in ITC by 2.3% through a substantial block deal amounting to Rs 11,613 crore (approximately USD 1.36 billion). The sale was executed via multiple tranches on BSE and NSE, with a floor price of Rs 400 per share, reflecting a discount to the previous day's closing price.
Following this transaction, ITC's stock price fell by 1.46% on the National Stock Exchange, trading at Rs 419.85 per share. Although the sale was entirely secondary, meaning ITC will not benefit from the proceeds, the move grants BAT enhanced financial flexibility. The funds are anticipated to support BAT's initiatives in transformation and strategic investments.
The stake sale, handled by Goldman Sachs (India) Securities and Citigroup Global Markets India, was designed to align with BAT's commitment to sustainable shareholder returns while still maintaining a significant 23.1% stake in the FMCG-to-hotel conglomerate. BAT has had a historical investment relationship with ITC, aiming to capitalize on India's promising market dynamics through continued collaboration.
(With inputs from agencies.)
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