British American Tobacco Plc plans to sell a stake in Indian tobacco manufacturer ITC Ltd. worth at least $1.36 billion.
The Lucky Strike-maker is offering as many as 290 million shares at a floor price of 400 rupees ($4.69) per share, according to terms seen by Bloomberg. The stake accounts for as much as 2.3% of ITC’s outstanding shares.
BAT will use the proceeds to increase its share buybacks by £200 million to a total of £1.1 billion in 2025, the company said in a statement Tuesday. Its remaining stake in ITC is still seen as a “core strategic component of our global footprint,” Chief Executive Officer Tadeu Marroco said.
BAT is ITC’s largest shareholder and owns about a quarter of the company, according to data compiled by Bloomberg. Last year, it sold a position worth about £1.57 billion and also used the proceeds to buy back shares.
ITC is an Indian conglomerate that earns a large portion of its revenue from cigarettes and also runs other businesses, including food products and packaging.
