BAT To Sell $1.4 Billion Stake In ITC Via Block Deal - Check Floor Price

British American Tobacco (BAT) announced on Tuesday that it intends to sell a 2.3% stake in Indian consumer goods giant ITC Ltd., in a block trade valued at approximately $1.4 billion.

Despite the divestment, BAT will retain a dominant 23.1% stake in ITC, making it the company’s largest shareholder.

According to a term sheet reviewed by Reuters, the sale involves up to 290 million shares at a floor price of Rs 400 per share, representing a 7.8% discount to ITC’s closing price on Monday.

Goldman Sachs, Citigroup to Lead Deal
Global investment banks Goldman Sachs and Citigroup are acting as joint bookrunners for the transaction, the term sheet revealed.

The deal marks the second significant block trade in India this week, following the $1.36 billion stake sale by IndiGo co-founder Rakesh Gangwal in the low-cost airline.

Boosts 2025 Buyback Programme
In conjunction with the stake sale, the London-listed tobacco major said it will increase its 2025 share buyback programme by £200 million, taking the total to £1.1 billion ($1.49 billion).

“This transaction allows us to enhance returns to shareholders through an expanded buyback programme,” BAT said, as mentioned in the report by Reuters.

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Last year, BAT sold a 3.5% stake—or 436.9 million shares—of ITC for around $2 billion, marking one of the largest block trades in Indian market history.
 

No Assurances Deal Will Proceed
While the proposed transaction has been outlined, BAT noted that “there can be no certainty that any such transaction will proceed.” The company did not disclose further details.
In its February forecast, BAT had projected only 1% annual revenue growth, citing regulatory and tax pressures in markets like Bangladesh and Australia. 

The company owns several global cigarette brands, including Dunhill and Lucky Strike.

(With Inputs From Reuters)