BAT looks to sell a ‘small part’ of its stake in ITC as soon as this week

The London-listed company has been in talks with Bank of America Corp. and Citigroup Inc. for the potential divestment of ITC shares worth around $2 billion to $3 billion through block trades, Bloomberg News reported quoting sources.

In a statement, BAT confirmed that it was evaluating a possible disposal of a “small part” of its ITC shareholding through an on-market block trade. There’s no certainty on the terms of any potential transaction or whether the deal will move ahead, it said.

Also Read: BAT’s stake sale in ITC is almost here

BAT currently holds a 29% stake in the Indian cigarette-to-hotel conglomerate ITC, according to data compiled by Bloomberg. 

In February, BAT announced that it was “actively working” to reduce its roughly 29% stake in ITC.

Such deals are usually done at a discount to the market price. Details of the transaction could still change, and the launch of the offering may spill into next week depending on market conditions, the Bloomberg report said quoting people with knowledge of the matter.

BAT shares rose after the Bloomberg News report and were up 1.4% at the close Monday in London. In the past 12 months, BAT shares have fallen 23%.

Meanwhile, ITC share price has dropped 11% in 2024 so far after more than doubling over the preceding two years.

On Monday, ITC shares ended 0.96% lower at ₹409.40 apiece on the BSE.

(With inputs from Bloomberg)

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Published: 12 Mar 2024, 06:22 AM IST