BAT completed a block trade of ITC Hotels shares worth ₹38.2 billion, representing 9% of issued capital. The company retains a 6.3% stake in ITC Hotels, balancing capital monetization with strategic exposure to India’s hospitality sector. The move reflects BAT’s portfolio optimization and long-term investment outlook.
British American Tobacco (BAT) announced the completion of a significant equity transaction involving ITC Hotels. The company executed a block trade representing 9% of ITC Hotels’ issued ordinary share capital, generating net proceeds of INR 38.2 billion. Despite this divestment, BAT confirmed it will continue to hold approximately 6.3% in ITC Hotels, signaling its ongoing strategic interest in India’s hospitality sector.
Key Highlights
-
Transaction scale: The block trade accounted for 9% of ITC Hotels’ issued share capital, marking a major equity movement.
-
Proceeds realized: BAT secured ₹38.2 billion in net proceeds, strengthening its liquidity and capital flexibility.
-
Retained stake: Post-trade, BAT maintains a 6.3% holding, ensuring continued exposure to ITC Hotels’ growth trajectory.
-
Strategic rationale: The move reflects BAT’s portfolio optimization strategy, balancing capital monetization with sustained investment in India’s expanding hospitality industry.
-
Market context: Analysts note strong investor appetite for ITC Hotels, driven by India’s robust tourism outlook and rising demand for premium hospitality services.
This transaction underscores BAT’s ability to unlock shareholder value while retaining influence in ITC Hotels, aligning with its long-term investment strategy.
Sources: Reuters Business, Economic Times Markets, TASS News Roundup