BAT considers selling part of ITC stake amid speculation

LONDON - British American Tobacco (NYSE:BTI) p.l.c. (BAT (LON:BATS)) has acknowledged ongoing market rumors by confirming it is considering the sale of a portion of its investment in ITC (NSE:ITC) Limited. The company stated on Tuesday that it is evaluating the possibility of an on-market trade to dispose of a small part of its shareholding in the Indian conglomerate.

While BAT has made it clear that discussions are underway, it emphasized that there is no guarantee the transaction will occur, nor are the terms of any potential deal finalized. The tobacco giant has promised to provide updates as the situation develops.

This move comes as BAT continues to pivot its business strategy towards a "Smokeless World," with a focus on growing its portfolio of nicotine and smokeless tobacco products. The company, which employs over 48,000 people worldwide, reported revenues of £25.9 billion in 2024, with new category products like Vuse, glo, and Velo contributing £3.4 billion to that total.

BAT’s long-term goals include having 50 million adult consumers of its smokeless products by 2030 and deriving 50% of its revenue from these products by 2035. These targets are a part of BAT’s broader environmental, social, and governance (ESG) commitments, which also involve achieving net-zero emissions across its value chain by 2050. The company’s efforts in sustainability were recognized in 2024 with a Triple A rating from CDP for its actions and transparency on climate change, water security, and forests.

The information regarding BAT’s potential divestment from ITC and its strategic direction is based on a press release statement from the company, which contains inside information for the purposes of Article 7 of the Market Abuse Regulation. BAT has not provided further details on the potential transaction or its exact impact on the company’s financials or market positioning. Investors and interested parties are advised to await further announcements for concrete details.

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