BAT eyes 2.3% stake sale in ITC via $1.36 billion block deal

British American Tobacco (BAT) is planning to divest a 2.3% stake in ITC Ltd, valued at approximately $1.36 billion, through a block deal. This transaction follows a previous sale in March 2024, where BAT offloaded a 3.5% stake in ITC for about $2.1 billion, marking it as India's third-largest block deal in history. The upcoming sale reflects BAT's strategic move to rebalance its portfolio and optimize its investment returns amid evolving global market conditions. The decision to sell further shares in ITC comes as BAT continues to streamline its focus on core business areas, including reduced-risk products and new categories. ITC, a diversified conglomerate with interests spanning from tobacco to hospitality, remains a significant player in the Indian market. BAT's gradual reduction of its stake in ITC suggests a calculated approach to managing its investments while maintaining a substantial, albeit reduced, interest in the Indian company. Market analysts are closely watching the potential impact of this transaction on ITC's stock performance and investor sentiment. The block deal, expected to be executed on the stock exchange, will likely attract substantial interest from institutional investors eager to secure a stake in one of India's leading companies. As BAT continues its strategic realignment, the financial markets will be keen to see how ITC navigates this transition and leverages new opportunities for growth.

— Authored by Next24 Live