BAT Sells 3.5% Stake in ITC for ₹17,485 Crore in Open Market Transactions

In a significant transaction, British multinational British American Tobacco Plc (BAT) has divested 3.5% of its stake in ITC Ltd, India's leading FMCG and hotel conglomerate, through open market transactions. The block trade, valued at ₹17,485 crore, was completed on Wednesday, March 13, 2023.

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Significant Shareholding Maintained

Despite the sale, BAT will continue to hold a substantial 25.5% stake in ITC, underscoring its long-standing commitment to the Indian market. The block trade involved the sale of over 43.68 crore equity shares in 48 tranches, representing 3.5% of ITC's total outstanding shares.

Prominent Investors Acquire Shares

The shares were acquired by a consortium of renowned institutional investors, including Singapore Government, Monetary Authority of Singapore, Lockheed Martin Corporation, Goldman Sachs Singapore, Copthall Mauritius Investment, BofA Securities Europe SA, Societe Generale, Morgan Stanley Asia Singapore Pte, and Ghisallo Master Fund LP. This diverse group of investors reflects the strong interest in ITC's growth potential.

Average Price and Deal Size

The shares were sold at an average price of ₹400.25 per share, resulting in a total deal size of ₹17,484.97 crore. This transaction marks one of the largest block trades in the Indian stock market in recent times.

BAT's Long-Term Commitment to ITC

BAT's association with ITC dates back to the early 1900s, and the two companies share a mutually beneficial relationship. BAT remains fully supportive of ITC's management team, performance, and strategy, recognizing the company's significant value creation for its shareholders.

BAT's Strategic Portfolio

BAT is a global consumer goods company with a diversified portfolio of products. Its strategic focus includes global cigarette brands, a growing range of nicotine and smokeless tobacco products, including the vapour brand Vuse, heated product brand glo, and Velo, a modern oral nicotine pouch brand.

The sale of a 3.5% stake in ITC by BAT is a strategic move that allows the company to unlock value and pursue its global growth objectives. Despite the divestment, BAT remains a significant shareholder in ITC, demonstrating its continued confidence in the company's long-term prospects and its commitment to the Indian market.