According to a report from Reuters on March 11th, British American Tobacco (BAT) stated it is assessing the possibility of selling a "small portion" of its stake in Indian company ITC through on-market bulk trading.
The British American Tobacco company announced in February that it is actively working to reduce its stake in the Kolkata-based company by approximately 29%. When the UK company decided to abandon its new buyback plan last year to focus on investing in new products, investors were disappointed, leading to a decline in its stock price.
This equity sale will enable BAT to pay off debt and reach the leverage range required for stock buybacks more quickly. BAT has been in negotiations with Bank of America and Citigroup about the possibility of withdrawing 2 to 3 billion dollars worth of ITC stock through block trades.
In addition, Bloomberg cited sources as saying that the sale of shares could potentially begin as early as this week.
According to reports, ITC is one of India's largest diversified companies, with business operations spanning sectors such as cigarettes, alcohol, hotels, agriculture, information technology, and consumer goods. ITC has a significant influence in India's business industry and also maintains a presence in international markets.
During last month's earnings conference call, British American Tobacco CEO Tadeu Marroco told investors that the cigarette giant aims to maintain a certain level of influence in ITC and would need to hold 25% of the shares in order to have veto power.
Notice
1. This article is provided exclusively for professional research purposes related to industry, technology and policy. Any reference to brands or products is made solely for the purpose of objective description and does not constitute an endorsement, recommendation, or promotion of any brand or product.
2. The use of nicotine products, including but not limited to cigarettes, e-cigarettes, and heated tobacco products, is associated with significant health risks. Users are required to comply with all relevant laws and regulations in their respective jurisdictions.
3. This article is strictly restricted from being accessed or viewed by individuals under the legal age.
Copyright
This article is either an original work by 2Firsts or a reproduction from third-party sources with the original source clearly indicated. The copyright and usage rights of this article belong to 2Firsts or the original source. Unauthorized reproduction, distribution, or any other unauthorized use of this article by any entity or individual is strictly prohibited. Violators will be held legally responsible. For copyright-related matters, please contact: info@2firsts.com
AI Assistance Disclaimer
This article may have utilized AI to enhance translation and editing efficiency. However, due to technical limitations, errors may occur. Readers are advised to refer to the sources provided for more accurate information.
This article should not be used as a basis for any investment decisions or advice, and 2Firsts assumes no direct or indirect liability for any errors in the content.
