British American Tobacco (BAT) CEO expressed skepticism about the benefits of relocating the company's listing from the UK, contrasting with other firms like BHP, CRH, Smurfit Kappa, and Flutter which have moved their listings to the US. Despite suggestions, the BAT chief emphasized the importance of maintaining the company's listing in London, calling a potential move to the US a 'distraction' and not a 'no-brainer'. Additionally, BAT announced a $2 billion buyback program, following the sale of part of its stake in India's ITC. The buyback plan allocates £0.7 billion for 2024 and £0.9 billion for 2025, with the total matching the ITC net proceeds but not accounting for the company's free cash flow, which stood at £3.3 billion after dividends in 2023. The difference is expected to cover tax, debt reduction towards a new target of 2-2.5 times, or mergers and acquisitions. Notably, GQG, which previously owned 4% of $BATS / $BTI stock, sold out of the company in July last year.
British American Tobacco starts a $2 billion buyback program after selling part of its stake in India’s ITC https://t.co/zLfkigbhy1
British American Tobacco starts a $2 billion buyback program after selling part of its stake in India’s ITC https://t.co/Y2QqqPrReG
British American Tobacco $BATS / $BTI officially announces buyback program £0.7bn in 2024, £0.9bn in 2025 While total seems to equal ITC net proceeds, it ignores FCF each year (£3.3bn after dividends in 2023) Difference can be tax, debt paydown (to new 2-2.5x target), or M&A https://t.co/28dPgIoT7f
"BAT chief: moving to US not a ‘no-brainer’ as he defends London listing" "GQG, which at its peak owned 4% of $BATS / $BTI stock, sold out of the company in July last year" https://t.co/4IxM94D4cg
BAT chief: moving to US not a ‘no-brainer’ as he defends London listing https://t.co/omnxUtdxKo
"Among those that have moved their listings to the US are miner BHP, building materials group CRH, packaging company Smurfit Kappa and gambling group Flutter." BAT chief rules out listing move from London to New York as ‘distraction’ $BTI https://t.co/gkAGMes2RQ
BAT CEO says he's unsure the benefit of moving BAT’s listing out of the UK would be as clear as some people have suggested https://t.co/G8OmjV4qoV