Key Points
ITC Ltd, the Indian conglomerate with businesses ranging from cigarettes to hotels, witnessed a significant transaction involving its equity shares amidst reports that British American Tobacco (BAT), its largest public shareholder, is preparing to offload a portion of its stake in the company, according to a report by NDTV Profit..
The London-based tobacco giant, which currently holds a 29.03% stake in ITC through three of its entities, has been in discussions with Bank of America Corp and Citigroup Inc. regarding a potential divestment of ITC stock worth approximately $2 billion to $3 billion through block trades..
Last month, BAT hinted at its intentions to monetise its stake in ITC to enhance its balance sheet flexibility. Tadeu Marroco, BAT's Chief Executive, stated, "We continue to pursue all opportunities to enhance balance sheet flexibility and, as part of this, we regularly review our stake in ITC..
The potential divestment by BAT, ITC's long-standing strategic partner, could have significant implications for the Indian company's future strategy and shareholder structure..
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