British American Tobacco (BAT) is set to sell a portion of its stake in Indian partner ITC, with plans to initiate the sale as early as this week. The sale is reported to involve a potential divestment of around $2 billion to $3 billion in ITC stock through block trades. This move comes as shares of ITC have seen a decline of 11% in 2024. BAT is selling as much as $2.1 billion of shares in ITC in a block trade, offloading 3.5% of its stake. Part of the proceeds from this sale will be used for a £700 million buyback. The stake sale has been priced at a discount, with shares offered at a 5% discount. The net proceeds from the ITC block trade are reported to be at Rs 16,690 crore, raising INR 166.9 billion (£1.5 billion) from 436,851,457 shares, equating to INR 382 per share, a ~7% discount to ITC's closing price of INR 404.45 the day before the sale. Each 1% of ITC is valued at approximately $620 million. Goldman Sachs and Morgan Stanley have maintained their positive outlook on ITC, with target prices of Rs 480 and Rs 491, respectively. Ace investor Sanjiv Bhasin views the short-term pain from the stake sale as an opportunity for long-term investors.
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‘Short-term pain…’ - Sanjiv Bhasin on ITC-BAT stake sale - Market wizard sees BIG move! @sanjiv_bhasin https://t.co/dHTharqvEp
‘Short-term pain…’ - Sanjiv Bhasin on ITC-BAT stake sell - Market wizard sees BIG move! @sanjiv_bhasin https://t.co/dHTharqvEp
British American Tobacco ITC stake sale raised INR 166.9bn (£1.5bn) from 436,851,457 shares This equates to INR 382 per share, a ~7% discount to ITC closing price of INR404.45 the day before (Tue) $BATS $BTI $ITC https://t.co/8x4EHBFkXU
British American Tobacco ITC stake sale raised INR 166.9bn (£1.5bn) from 436,851,457 shares This eqates to INR 382 per share, a ~7% discount to ITC closing price of INR404.45 the day before (Tue) $BATS $BTI $ITC https://t.co/5fbQb66FZQ
News Alert | British American Tobacco says: Completed block trade of Rs 43.69 cr shares in ITC to institutional investors https://t.co/yfAHXYbij7
JUST IN | British American Tobacco says net proceeds from ITC block trade at Rs 16,690 cr: Agencies @BATplc https://t.co/UsyobomROd
India's ITC jump on share sale at premium, day after BAT's plan to trim stake https://t.co/YYxd43vUEj https://t.co/9jNdftmIws
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"The short-term pain will be an opportunity for long-term buyers," says Sanjiv Bhasin on ITC's stake sale by BAT @sanjiv_bhasin https://t.co/8VN0KSa6hu
'A great opportunity for long term investors': here's ace investor Sanjiv Bhasin's take on BAT offloading 3.5% stake in ITC. @sanjiv_bhasin https://t.co/64xGI9RbHj
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British American Tobacco to Sell Down ITC Stake, Use Funds for Buybacks https://t.co/heWIINT0JE
LIVE | BAT sells 3.5% stake worth via block deals in ITC https://t.co/4pTejMU8jb
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BAT to sell 3.5% stake in ITC; offers shares at 5% discount - ET NOW's Vinni explains @vinnii_motiwala https://t.co/ljKWn2dzng
Brokerage Radar | Morgan Stanley on ITC maintains overweight with target price of Rs 491 @MorganStanley @ITCCorpCom https://t.co/zcIOiNAsoE
Brokerage Radar | Goldman Sachs on ITC maintains buy with target price of Rs 480 @GoldmanSachs @ITCCorpCom https://t.co/9QHjwCXXMk
British American Tobacco $BATS $BTI selling 3.5% of ITC, spending some of the proceeds on £700m buyback as expected https://t.co/4YsDDmIlsz
British American Tobacco is selling as much as $2.1 billion of shares in Indian partner ITC in a block trade https://t.co/piGzteelg8
"British American Tobacco Is Said to Launch ITC Selldown as Soon as This Week" (Bloomberg) Reportedly "a potential divestment of around $2 billion to $3 billion in ITC stock through block trades" "Shares of ITC have slipped 11% in 2024" Each 1% of ITC ~ $620m $BATS $BTI https://t.co/tucdkWl3EC
BAT mulls sale of 'small part' of stake in India's ITC https://t.co/f1BN1R9uot https://t.co/Wd6ShghYvs
ITC Stake Sale: Fresh details emerge! FMCG giant's biggest shareholder BAT to sell shares worth billions? https://t.co/LR22K1X1v8
Sources Say | BAT said planning to launch ITC share sale as soon as this week #ITC #BritishAmericanTobacco #StockMarket https://t.co/XN1WM5vSbZ
British American Tobacco is preparing to kick off a sale of part of its stake in Indian partner ITC as soon as this week, sources say https://t.co/SQ6Ncj9qk2