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British American Tobacco PLC said on Tuesday it plans to sell 2.3% interest in ITC Ltd to continue funding its share buyback programme. ITC is a Kolkata-based conglomerate with businesses across the consumer goods sector in India. The London-based cigarette and nicotine product manufacturer will dispose of its small shareholding in ITC through block trade shares to institutional investors via an accelerated book build process. The maker of Dunhill and Lucky Strike said it will use the proceeds from the ITC sale to continue buying back its own shares. It intends to increase its share repurchase by £200 million to £1.1 billion in 2025. Back in March last year, BAT sold 436.9 million shares in ITC, netting £1.57 billion at the time. The block trade shares represented 3.5% of ITC’s issued share capital. The cigarette and nicotine product manufacturer said back then it intended to use the net proceeds to buy back its own shares. Following completion of the proposed block trade, BAT will keep a 23.1% shareholding in ITC. ‘ITC is a valued associate of BAT in an attractive geography with long-term growth potential where BAT benefits from exposure to the world’s most populous market,’ BAT Chief Executive Officer Tadeu Marroco said on Tuesday. Earlier in the day, BAT confirmed the recent speculation over the potential disposal of part of its shareholding in ITC. Shares in BAT closed down 0.2% at 3,329.00 pence each on Tuesday in London, but they closed 1.2% higher at R 809.16 each in Johannesburg. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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