The reports state that the deal is worth around USD 1.4 billion, and the company is eyeing to sell the stake in a block trade deal
British American Tobacco (BAT) is looking to sell a 2.3 per cent stake in the Indian consumer goods company, ITC. As per a report by Reuters, the deal is worth around USD 1.4 billion, and the company is eyeing to sell the stake in a block trade deal.
However, despite selling the stated stake, BAT will continue to remain ITC’s largest investor with a 23.1 per cent stake. The Reuters report added that the company will be selling up to 290 million shares in the deal, at a floor price of Rs 400. As far as the pricing is concerned, the report noted that this is at a 7.8 per cent discount to the closing price of the stock on Monday.
BAT will be increasing its 2025 1.1 billion pounds (USD 1.49 billion) share buyback programme by 200 million pounds as a result of the deal, as per the report. Last year, the company had sold 436.9 million shares or around 3.5 per cent of ITC’s outstanding shares, for around USD 2 billion, the report mentioned.
While the British firm is yet to disclose any more details on Tuesday, the reports noted that the company has also stated that there was no certainty that any such transaction will proceed. Earlier, on account of tax headwinds in Australia and Bangladesh, the company had forecasted a one per cent uptick in its annual revenue in February, as per the report. (With Reuters Inputs)
