ITC stake sale: BAT evaluates disposal of 'small part' via on-market trade, says this

British American Tobacco p.l.c. (BAT) has confirmed that it is exploring the possibility of selling a 'small portion' of its stake in India's ITC Limited. BAT currently holds a 20.3% stake in ITC, making it the company's largest investor according to data from the London Stock Exchange (LSEG).

The company stated that, should a disposal be pursued, it would be conducted through an on-market trade. It was emphasized by BAT that a final decision has not been made, and there is no guarantee that a transaction will take place or that the terms involved.

"A further announcement will be made if and when appropriate," as stated in a statement released by Company Secretary Caroline Ferland.

Last year, BAT sold 436.9 million shares of ITC, equivalent to approximately 3.5% of the company's total outstanding shares, for around $2 billion. This transaction marked the third-largest block deal in India's history.

Despite recent market speculation, BAT did not provide any further details on Tuesday and emphasized that there is no guarantee that the sale will proceed. The company, known for brands like Dunhill and Lucky Strike, remains cautious about the potential transaction.

In February, BAT forecasted a modest 1% growth in annual revenue, citing challenges such as tax issues in Bangladesh and Australia.