BAT Unloads 9% ITC Hotels Stake: ₹3,856 Cr Block Deal Rocks Hospitality

Deal Breakdown

Executed December 5, 2025, the transaction involved BAT subsidiaries—Tobacco Manufacturers (India), Myddleton Investment, Rothmans International—offloading 187.5 million shares at ₹205.60 floor (1% discount to ₹207.75 close). Total value hit ₹3,856 Cr ($460 Mn), trimming BAT's 15.3% stake gained via January ITC demerger. Citi Global Markets booked the accelerated deal.​

Strategic Context

BAT CEO Tadeu Marroco termed the stake "non-strategic," channeling proceeds to 2026 deleveraging amid ITC Hotels' 21% YTD gains (mcap ₹43,262 Cr). ITC retains 39.85%; listing since Jan 2025 boosted portfolio to 140+ properties. Deal coincides with Nifty caution pre-RBI MPC.​

Key Highlights

Shares Traded: 187.5 Mn (9% equity).​

Deal Value: ₹38.56 Bn at ₹205.60/share.​

Sellers: BAT units (from 15.3% holding).​

Market Impact: ~1% discount; stock flat pre-deal.​

Sources: Bloomberg, Economic Times, Business Standard, Reuters