BAT evaluating sale of small part of ITC stake, confirms in LSE filing

BAT may offload a small portion of its 25.45% stake in ITC via on-market trade, but says no certainty of deal; earlier divestment funded share buyback

British American Tobacco plc (BAT) on Tuesday said that its wholly owned subsidiary, Tobacco Manufacturers (India) Limited (TMI), intends to sell 2.3 per cent of the issued ordinary share capital in ITC Limited to institutional investors by way of an accelerated bookbuild process (block trade).

 

As per the terms of the transaction, the deal size is pegged at $1.36 billion. The shares are being offered at ₹400, a 7.8 per cent discount to the closing price of ₹433.90 per share.

 

As ITC goes ex-dividend by ₹7.85 per share, the discount works out to be 6.5 per cent versus the block