British American Tobacco (BAT) has announced and launched the block deal to sell a 3.5% stake in ITC tomorrow. The block deal size is estimated at Rs 16,775 crore, with shares priced between Rs 384-400, representing a 5% discount to today’s closing price of Rs 404.45
The company’s largest shareholder had announced that it intends to bring down its holding in ITC to 25%. Citi and Bank of America are the brokers to the deal. BAT will hold a 25.5% stake in the company after the block deal tomorrow. According to BAT, it will utilise the proceeds from the block deal to buyback BAT shares.
On Tuesday, shares of ITC closed at Rs 404.45 on the NSE.
