BAT planning to launch ITC selldown as soon as this week
London-listed BAT has been speaking with Bank of America Corp. and Citigroup Inc. about a potential divestment of around $2 billion to $3 billion in ITC stock through block trades, the people said.
Plc, the maker of Lucky Strike cigarettes, is preparing to kick off a sale of part of its stake in Indian partner as soon as this week, people with knowledge of the matter said.London-listed has been speaking with . and Citigroup Inc. about a potential divestment of around $2 billion to $3 billion in stock through block trades, the people said.
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 people said, asking not to be identified because the information is private.
BAT currently owns about 29% of Mumbai-listed ITC, according to data compiled by Bloomberg. The UK company said last month that it’s considering monetizing part of its holding.
ITC, an Indian conglomerate that gets a large portion of its revenue from cigarettes, also runs a variety of other businesses including food products and packaging. It also has a hotel business that it’s in the process of spinning off.
Shares of ITC have slipped 11% in 2024 after more than doubling over the preceding two years. The benchmark S&P BSE Sensex Index has risen about 2% this year.
Representatives for BAT, Bank of America and Citigroup declined to comment. A spokesperson for ITC couldn’t immediately be reached for comment outside regular business hours.
Source: Stocks-Markets-Economic Times
