BAT Sells Stake in ITC: Maintaining Strategic Ties Amid Financial Flexibility
British multinational BAT Plc reduced its stake in Indian conglomerate ITC by selling 2.5% for Rs 12,927 crore via a block deal. The transaction gives BAT financial flexibility while retaining a significant stake. ITC shares fell slightly after the sale, and no proceeds will go to ITC.
- Country:
- India
On Wednesday, British multinational BAT Plc divested a 2.5% stake in the Indian conglomerate ITC for Rs 12,927 crore (USD 1.51 billion) through a block deal, reported PTI, citing a revised term sheet.
Following the sale, ITC's shares declined by 1.15% to Rs 421.15 on the NSE. The stake, sold through BAT's arm Tobacco Manufacturers (India) Ltd, leaves BAT with a substantial, though reduced, shareholding of just under 23% in ITC.
Goldman Sachs and Citigroup Global Markets facilitated the share sale, which occurred across multiple tranches on BSE and NSE. The transaction underscores BAT's strategy to increase financial flexibility and pursue sustainable shareholder returns, while maintaining ITC as a core strategic partner in India.
(With inputs from agencies.)
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- BAT
- ITC
- stake sale
- block deal
- financial flexibility
- NSE
- Goldman Sachs
- Citigroup
- shareholding
- tobacco
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