BAT Sells 3.5% Stake in ITC for $2.1 Billion

BAT by 2FIRSTS.ai

Mar.14.2024

BAT Sells 3.5% Stake in ITC for $2.1 Billion

British American Tobacco (BAT) sells 3.5% stake in India's ITC Ltd for $2.1 billion, retaining 25.5% ownership.

According to a report from the Indian media outlet Theweek, British American Tobacco (BAT) sold a 3.5% stake in Indian Tobacco Company (ITC Ltd) through a public market transaction on March 13, with the total transaction amount reaching 174.85 billion rupees ($2.1 billion USD).

Despite completing this major transaction, BAT remains an important shareholder of ITC, holding a 25.5% stake in the company. Other shareholders of ITC include the Singapore government, Singapore Monetary Authority, Lockheed Martin Corporation, Goldman Sachs (Singapore), Copthall Mauritius Investments, BofA Securities Europe SA, Societe Generale, Morgan Stanley Asia Singapore Limited, and Ghisallo Master Fund LP.

BAT has sold over 436.8 million equity shares through its subsidiary India Tobacco Manufacturers (India) Ltd, in 48 transactions, equivalent to a 3.5% stake in ITC. The average selling price for these shares was 400.25 Indian rupees per share, with a total transaction value of 174.85 billion Indian rupees.

Over 30 institutions purchased shares in this sale, including ICICI Prudential Mutual Fund, Motilal Oswal MF, Nippon India MF, SBI MF, Max Life Insurance Company, IMF, Capital Group, Kuwait Investment Authority, The People's Bank of China, and International Bank for Reconstruction and Development.

It is reported that BAT plans to use the net proceeds from this bulk transaction to buy back its own shares by December 2025, starting as early as 2024, with a total amount of up to 700 million pounds. In addition, BAT will continue to use operating cash flow to fund its transformation and further reduce debt.

The initial investment by BAT in ITC can be traced back to the early 20th century, with both companies maintaining a mutually beneficial relationship for an extended period of time.

References:

[1] British American Tobacco sells 3.5 per cent stake in ITC for Rs 17,485 crore

Also Read:

[1] BAT Initiates Stock Buyback and ITC Share Sale

[2] BAT Considering Sale of Partial Stake in Indian ITC Company

[3] BAT Opens Innovation Center at Global R&D Headquarters in Southampton

#Traditional tobacco #Asia #India #Major companies

We welcome news tips, article submissions, interview requests, or comments on this piece.

Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn

Notice

1. This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.

2. The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.

3. This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.

4. Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.

Copyright

This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.

For copyright-related inquiries, please contact: info@2firsts.com

AI Assistance Disclaimer

This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.

We welcome any corrections or feedback. Please contact us at: info@2firsts.com

Special Report | Belarus to centralize vaping market under state supervision

Belarus is preparing to overhaul its vaping market under tight state control — from monopolizing imports to banning online sales and restricting retail licenses. Officials say nearly 77% of the disposable e-cigarette market is supplied illegally, prompting sweeping regulatory measures that have already sparked strong pushback from consumers and vape retailers.

Dec.03

BAT Subsidiary Warns of Surge in Illegal Nicotine Pouches in Canada, Calls for Unified Regulatory Framework

Imperial Tobacco Canada, a subsidiary of British American Tobacco, has urged the federal government to respond to the spread of illegal nicotine pouches by allowing approved products to be sold through a wider range of adult retail channels. The company is also calling for stronger retail inspections, enhanced digital tracking, and closer coordination among provinces to build a consistent regulatory framework and restore the accessibility of the legal market.

Dec.05 by 2FIRSTS.ai

Illegal Vape Sellers in the Netherlands Could Be Fined Up to €4,040

The outgoing Dutch government plans to raise fines for illegal sales of vapes and cigarettes, with first-time offenders facing a €2,040 penalty. The new fines, up to €4,040 for large companies, are expected to take effect on July 1, 2026, pending parliamentary approval.

Nov.10 by 2FIRSTS.ai

Vietnam’s Health Ministry Proposes Including E-Cigarettes and Heated Tobacco in the Investment Law Ban List

Vietnam’s Ministry of Health has submitted a proposal to the Government Office recommending that “e-cigarettes and heated tobacco products” be added to the list of prohibited investment and business sectors in the amended Investment Law. The proposal aligns with National Assembly Resolution No. 173/2024/QH15, which bans the production, trade, import, and use of these products starting in 2025.