British American Tobacco to Sell Down ITC Stake, Use Funds for Buybacks

By Ian Walker

British American Tobacco plans to sell up to 436.85 million shares of diversified Indian conglomerate ITC and will use the money raised to buyback shares through to December next year.

The FTSE 100 cigarette maker--which houses the Kent, Dunhill and Lucky Strike brands--said Tuesday that it will sell the shares via a bookbuild program, following which it will continue to own 25.5% of ITC. The share sale represents 3.5% of ITC.

BAT will buyback shares through to December 2025 starting with 700 million pounds ($896.9 million) worth of shares this year. It said that the company will continue to use operating cashflow toward its transformation, progressive dividends and reduce debt.

The company said in February that it planned to divest at least part of its 29.02% stake in ITC, a shareholding it has held in some form since the early 1900s.

Shares at 1456 GMT were up 44.50 pence, or 1.9%, at 2,363.50 pence. However, they are currently down 24% over the past 12 months.

Write to Ian Walker at ian.walker@wsj.com

(END) Dow Jones Newswires

March 12, 2024 11:31 ET (15:31 GMT)

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