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(Alliance News) - British American Tobacco PLC said on Wednesday it netted about GBP1.5 billion after the sale of a portion of its interest in ITC Ltd.
The London-based maker of cigarettes and vapes said it had completed the block trade of 436.9 million shares in ITC to institutional investors via an accelerated bookbuild process. The block trade shares represent 3.5% of ITC's issued share capital.
BAT now owns 25.5% of ITC.
On Tuesday, BAT said it intended to use the net proceeds of the block trade to buy back its own shares over a period ending December 2025, starting with GBP700 million in 2024.
The maker of Dunhill and Kent had been expected to collect just over USD2 billion from the sale.
BAT said on Wednesday it had received net proceeds from the block trade of INR166.9 billion, or around GBP1.5 billion at current exchange rates, so close to USD2.0 billion.
In Johannesburg, BAT shares advanced 1.2% to ZAR572.19 in early dealings.
BAT first hinted about a sale of its ITC stake in February.
It said on Tuesday ITC is its valued associate in an "attractive" market, with long-term growth potential, where BAT benefits from exposure to the world's most populous market. Its initial investment in ITC dates back to the early 1900s.
"I am confident that ITC, under the stewardship of its current management, will continue to create further value for its shareholders. We look forward to remaining important shareholders in ITC as it continues its journey of growth," BAT Chief Executive Officer Tadeu Marroco said on Tuesday.
By Artwell Dlamini, Alliance News reporter
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