British American Tobacco plc (BAT) on Thursday said that it plans to sell between 7 per cent and 15.3 per cent of its stake in ITC Hotels.In a regulatory filing, BAT said that its wholly owned subsidiaries -- Tobacco Manufacturers (India), Myddleton Investment Company, and Rothmans International Enterprises -- intend to sell between 7 per cent and 15.3 per cent of the issued ordinary share capital in ITC Hotels to investors through an accelerated bookbuild (block trade), subject to customary closing conditions.
The final number of shares to be sold will be decided to optimise pricing outcomes for the group, the company said.
According to reports, BAT is likely to offload 7 per cent stake. The deal price is Rs 205.65 per share, and the block size Rs 2,998 crore, reports said. Shares of ITC Hotels closed at Rs 207.75 on Thursday on the BSE.
The proceeds will support BAT's progress towards achieving its target leverage corridor of 2-2.5x adjusted net debt/adjusted earnings before interest, tax, depreciation, and amortisation (adjusted for Canada) by 2026-end.In a statement, BAT Chief Executive Tadeu Marroco said: 'Our direct shareholding in ITC Hotels was a result of the demerger process completed by ITC earlier this year. As previously stated, a direct stake in ITC Hotels is not a strategic holding for BAT. I am pleased that the proceeds from this transaction will further support progress towards our stated 2026 leverage corridor.'
-- Ishita Ayan Dutt, Business Standard