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4h ago

British American Tobacco Launches Accelerated Sale of Up to 15.3% ITC Hotels Stake

Proceeds are earmarked to cut debt toward a 2026 leverage target of 2–2.5 times adjusted net debt to EBITDA.

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Overview

  • The company began an accelerated bookbuild to place between 7% and its full 15.3% shareholding with institutional investors.
  • A termsheet set a floor price of Rs 205.65 per share for the large deals, indicating nearly Rs 3,000 crore of stock on offer on Friday.
  • The stake is valued at about $776 million, with the final number of shares to be set to optimize pricing for the group.
  • The placement will be executed by BAT subsidiaries Tobacco Manufacturers (India) Ltd., Myddleton Investment Co. and Rothmans International Enterprises Ltd.
  • BAT calls the holding non-strategic and notes it arose from ITC’s 2025 demerger of ITC Hotels, as ITC retains 39.85% and BAT earlier sold $1.5 billion of ITC shares in May.