British American Tobacco sells 9% ITC Hotels stake for $425 million
British American Tobacco sold a 9% stake in ITC Hotels for $425 million, reducing its holding from 15.3% to 6.3%. The sale was part of a strategy to reduce debt and exit non-strategic assets. BAT was the second-largest shareholder in ITC Hotels, inheriting the stake when ITC Ltd spun off its hotels business. The sale was conducted through an accelerated bookbuild process.
Dec 5 (Reuters) - British American Tobacco (BATS.L) has sold more than half its stake in ITC Hotels (ITCT.NS) for about 38 billion rupees ($424.70 million), the tobacco giant said on Friday.
BAT held a 15.3%
stake
in the company, which it sought to dilute to reduce debt and exit a non-strategic asset. After the 9% stake sale, it now holds 6.3%.
The maker of Lucky Strike and Dunhill cigarettes was the second-biggest shareholder in ITC Hotels before the sale, according to LSEG data. It inherited the stake when ITC Ltd (ITC.NS) spun off its hotels business in January while holding the largest stake.
BAT sold 187.5 million shares in ITC Hotels through an accelerated bookbuild process.
Shares of the India-listed company were down 1% on Friday.
($1 = 89.9450 Indian rupees)
