British American Tobacco extends share buyback program to £1.1 billion

Published 27/06/2025, 15:04
British American Tobacco extends share buyback program to £1.1 billion

LONDON - British American Tobacco (NYSE:BTI) p.l.c. (LSE:BATS) has extended its share buyback program by an additional £200 million, bringing the total amount to be repurchased by December 31, 2025, to £1.1 billion, according to a company statement Friday.

The tobacco giant said it has entered into an irrevocable, non-discretionary agreement with UBS AG London Branch to purchase shares during the closed period from July 1 to July 30, 2025, the day before its half-year results release.

The extension will be funded using net proceeds from the May 28 block trade of 313 million ordinary shares in ITC (NSE:ITC) Limited to institutional investors through an accelerated bookbuild process.

The company stated that the purpose of the program is to reduce its share capital, with all repurchased shares to be canceled. UBS will make trading decisions independently of the company.

The maximum number of shares permitted for repurchase under the program is 220,451,469, less any shares already purchased since shareholders granted the authority at the company’s 2025 annual general meeting.

The maximum price for shares will be the higher of 105 percent of the average market value for the five business days preceding purchase, or the highest price between the last independent trade and the highest current independent purchase bid on the trading venue.

The buyback will be conducted in accordance with the company’s shareholder authority, UK market abuse regulations, and Financial Conduct Authority listing rules.

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