British American Tobacco proposal to buy back shares not an option: ITC

BAT is unable to increase its stake in ITC as a result of restrictions on non-Indian companies purchasing further shares in Indian tobacco companies

British American Tobacco (BAT), which turned down ITC’s proposal for issuing employee stock option schemes (ESOPs), has suggested that the diversified conglomerate consider buying shares in the market for the purpose.

“We support plans to incentivise executives and employees of ITC with company shares as long as the incentivisation is not done in a manner which is dilutive for ITC shareholders. This could include buying shares in the market for issuing ESOPs, which a number of other large and well-respected Indian companies have done in recent years,” a BAT spokesperson said.

However, a buyback for ESOP was not an option for ITC.