Robinhood shares gain on Q2 beat, as user and crypto growth accelerate
LONDON - British American Tobacco (NYSE:BTI) p.l.c. (BAT (LON:BATS)), through its wholly-owned subsidiary Tobacco Manufacturers (India) Limited, announced on Tuesday the launch of a proposed block trade, which will involve the sale of approximately 2.3% of the issued ordinary share capital in ITC (NSE:ITC) Limited. This sale to institutional investors is to be executed via an accelerated bookbuild process, depending on standard closing conditions.
The transaction is aimed at enhancing BAT’s financial flexibility as it continues to invest in transformation and sustainable shareholder returns. BAT plans to use the proceeds to achieve its target leverage corridor of 2-2.5x adjusted net debt/adjusted EBITDA by the end of 2026, adjusted for Canada. Additionally, the funds will support the expansion of BAT’s share buyback program by £200 million, bringing the total to £1.1 billion for the year 2025.
BAT, which has been invested in ITC since the early 1900s, will retain a significant shareholding of approximately 23.1% post-transaction, underscoring the ongoing strategic partnership between the two companies within India’s market. Tadeu Marroco, Chief Executive of BAT, expressed confidence in ITC’s management and the company’s potential for continued shareholder value creation.
The completion of the block trade is expected to have no impact on BAT’s financial guidance for the years 2025 or 2026, except for the intended increase in the share buyback program. Further details regarding the net proceeds will be disclosed following the completion of the transaction.
BAT, a leading global consumer goods company, is committed to a future without cigarettes, focusing on a portfolio of nicotine and smokeless tobacco products. In 2024, BAT reported revenue of £25.9 billion and an adjusted profit from operations of £11.9 billion, with its New Category products contributing £3.4 billion in revenue.
The company has set ambitious targets, including achieving 50 million adult consumers of its smokeless products by 2030 and generating 50% of its revenue from these products by 2035. BAT is also dedicated to environmental goals, having received a Triple A rating from CDP in 2024 for its efforts in climate change, water security, and forests.
This news is based on a press release statement from British American Tobacco p.l.c.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.