Bat to sell 2.3% stake in ITC by block deal

Kolkata: British American tobacco PLC (BAT), the largest shareholder of ITC Limited, said on Tuesday that it plans to sell about 2.3% of the institutional investors in Kolkata through Block Trade. It states that the net income from the deal will be shared after the transaction is completed without exposing more details.

This second part will be reduced by bat in ITC, while it will last year. The% is sold in the same block deal, with about 16,690 crore.

The BAT said that after the current block trade deal, it will be a significant shareholder of ITC which would be with about 23.1% holding.

In an instruction to the London Stock Exchange, the UK-chief headquarters company said its entirely-owned subsidiary tobacco makers (India) would sell shares to Limited ITC. Bat is currently owned by three companies by three companies – tobacco makers (India), MyDleton Investment Company and Rothmans International Enterprises. Tobacco manufacturers have a 20.31% majority of the bat’s share.

BAT’s chief executive Tadero Maroko said that ITC is a valuable contributor to the attractive geography with long -term growth, where the bat benefits from exposure to the world’s most populous market.

“While this transaction supports delivery of our commitments to bat shareholders, we continue to view ITC as the main strategic component of our global move as we partner with business opportunities in India.

According to some media reports, the proposed deal size of this block trade can be around $ 36 1.36 billion and ITC shares will be sold at around ₹ 400. This could not be verified independently.

The announcement was made after hours of local trade in India. The ITC scrip fell 2.01% on the BSE on Tuesday to close at 3 433.9, while the Sensex fell 0.76%.