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BAT Sells Majority ITC Hotels Stake for $425M
5 Dec
Summary
- British American Tobacco sold over half its ITC Hotels stake.
- The sale yielded approximately $424.70 million for BAT.
- This transaction reduces BAT's stake from 15.3% to 6.3%.
British American Tobacco has successfully sold over half of its interest in ITC Hotels, securing approximately $424.70 million from the transaction. The company's stake has been significantly reduced from 15.3% to 6.3% following this major divestment.
The sale was conducted through an accelerated bookbuild process, involving the exchange of 187.5 million shares. This strategic maneuver by the maker of Lucky Strike and Dunhill cigarettes is intended to lower its overall debt and shed an asset considered non-essential to its core operations.
Before this sale, British American Tobacco held the position of the second-largest shareholder in ITC Hotels. The stake was initially acquired when ITC Ltd. demerged its hotels division in January, with ITC Ltd. retaining the largest shareholding.
