British American Tobacco p.l.c. (BAT) on Thursday announced that its wholly-owned subsidiaries — Tobacco Manufacturers (India) Limited, Myddleton Investment Company Limited, and Rothmans International Enterprises Limited — will sell between 7% and approximately 15.3% of the issued ordinary share capital of ITC Hotels Limited through an accelerated bookbuild process.
The final quantum of shares offered in the Block Trade will be determined with the objective of optimising pricing outcomes for the Group, BAT said. The transaction remains subject to customary closing conditions.
Proceeds to support BAT’s deleveraging goals
BAT confirmed that the funds raised will be used to help the Group progress toward its targeted 2–2.5x adjusted net debt to adjusted EBITDA leverage corridor (adjusted for Canada) by end-2026.
Chief Executive Tadeu Marroco said the Group’s direct stake in ITC Hotels was purely an outcome of corporate restructuring.
“As previously stated, a direct stake in ITC Hotels is not a strategic holding for BAT,” Marroco noted, adding that the proceeds will support continued progress toward BAT’s stated leverage goals.
Background: BAT’s stake arose from ITC’s demerger
ITC Hotels, established in 1975, has expanded to over 140 hotels across more than 90 destinations in the Indian subcontinent. The company was demerged from ITC Limited and has been listed as a separate publicly traded entity since January 2025.
As a result of BAT’s earlier shareholding in ITC Limited, the company currently holds approximately 15.3% of ITC Hotels. The proposed Block Trade could reduce this holding significantly, depending on final investor demand.
BAT said it will provide further details on the final number of shares sold and net proceeds received once the Block Trade is completed.
