British American Tobacco p.l.c. (BAT) has formally announced that its wholly-owned subsidiaries—Tobacco Manufacturers (India) Limited, Myddleton Investment Company Limited and Rothmans International Enterprises Limited—intend to sell between 7% and up to 15.3% of the issued ordinary share capital in ITC Hotels Limited through an accelerated bookbuild process.
The upper end of the sale range—15.3%—indicates that BAT is prepared to offload its entire stake in the newly listed hospitality company, effectively exiting ITC Hotels if market demand supports a full block trade. The final quantum of shares sold will be determined based on achieving the most favourable pricing outcome for the Group.
BAT said that proceeds from the block deal will support the company’s financial goals, specifically advancing progress toward achieving its 2–2.5x adjusted net debt/adjusted EBITDA leverage corridor (adjusted for Canada) by end-2026.
ITC Hotels, established in 1975, today operates over 140 hotels across more than 90 destinations in India. The company became a publicly listed entity in January 2025 following its demerger from ITC Limited. BAT came to hold a 15.3% stake in ITC Hotels as a result of its earlier shareholding in ITC before the demerger.
BAT CEO Tadeu Marroco reiterated that the stake is purely a legacy of the demerger and not a strategic investment for the Group.
He said the transaction aligns with BAT’s capital allocation priorities:
“Our direct shareholding in ITC Hotels was a result of the demerger process that was completed earlier this year. As previously stated, a direct stake in ITC Hotels is not a strategic holding for BAT. I am pleased that the proceeds from this transaction will further support continued progress towards our stated 2026 leverage corridor.”
Further details on the exact number of shares sold and the net proceeds will be disclosed once the transaction is completed.
