Latest news with #BAT
Yahoo
a day ago
- Business
- Yahoo
British American Tobacco sells $1.5 billion stake in India's ITC via block deal
By Scott Murdoch (Reuters) -British American Tobacco has sold a $1.5 billion stake in Indian consumer goods company ITC at 413 Indian rupees per share, according to a term sheet seen by Reuters. The company sold 313 million shares in ITC, representing 2.5% of ITC, according to the term sheet. This final amount exceeded its initial plan to sell up to 290 million shares in the deal, valued at approximately $1.4 billion. The final sale price represented a 4.8% discount to ITC's closing price of 433.90 rupees on Tuesday. Shares of ITC dropped nearly 3% to 421.70 rupees on Wednesday. The stock was the top loser on both Nifty 50 and the FMCG index. BAT will remain ITC's largest shareholder after the deal, according to LSEG data. Goldman Sachs and Citigroup led the deal, the term sheet showed. The deal is the second major block trade in India this week after IndiGo co-founder Rakesh Gangwal sold a 5.7% stake in the low-cost carrier worth $1.36 billion. BAT said it would increase its 2025 1.1 billion pounds ($1.49 billion) share buyback programme by 200 million pounds as a result of the deal, which is not expected to have any other impact on its annual outlook. The London-listed cigarette maker had last year sold 436.9 million shares, or roughly 3.5% of ITC's outstanding shares, for about $2 billion in what was India's third-largest block deal ever. The British firm in February forecast 1% growth in its annual revenue, citing tax headwinds in key markets such as Bangladesh and Australia. ($1 = 0.7401 pounds) Sign in to access your portfolio
The Star
a day ago
- Business
- The Star
BAT remains upbeat despite challenging 1Q performance
British American Tobacco (M) Bhd managing director Nedal Salem KUALA LUMPUR: British American Tobacco (M) Bhd remains upbeat on its outlook, backed by a resilient combustibles business and Dunhill's lead in the premium segment. 'We are confident that our financial performance in 2025 will strengthen as the group continues to focus on growing Dunhill's leadership in Malaysia as well as driving quality and sustainable growth in the premium, aspirational premium and value-for-money segments,' managing director Nedal Salem said in a statement. In the first quarter ended March 31 (1Q25), BAT posted a lower net profit of RM23.3mil, or earnings per share of 8.20 against RM29.9mil, or 10.50 sen in the year-ago quarter. Revenue for the quarter fell to RM321.9mil versus RM411.9mil a year ago. The board of directors has declared a first interim ordinary dividend of 7.5 sen per ordinary share, amounting to RM21.5mil, payable on July 3 to shareholders. Salem said BAT's financial performance for 1Q25 reflects the challenging operating landscape in Malaysia, citing the ongoing impact of the tobacco black market and weaker demand following the earlier start of Ramadhan. 'Despite the challenging operating landscape, the group's flagship brand, Dunhill, continued to demonstrate strength, recording a 0.7 percentage point growth in market share compared to the same period last year. This reflects Dunhill's strength as the No. 1 brand in the country with 60 years of presence in Malaysia,' he said, Commenting on the Control of Smoking Products for Public Health Act 2024 and its related regulations (Act 852) that have taken effect with measures to be implemented in phases in 2025, Salem said, 'We continue to view Act 852 as a crucial step in the right direction to regulate the tobacco and vapour industry in Malaysia. While 2025 will be a transitional year given the multiple measures that will take effect throughout the year, we are fully prepared to navigate the phased implementation of Act 852.' He added that while the industry remains affected by the tobacco black market, the group is encouraged by stronger enforcement efforts, particularly by the Royal Malaysian Customs Department, which have helped bring the black market incidence down from 56.4% in January 2024 to 54.8% in January 2025.
Time of India
2 days ago
- Business
- Time of India
British American Tobacco sells $1.5 billion stake in India's ITC via block deal
HighlightsBritish American Tobacco sold a $1.5 billion stake in Indian consumer goods company ITC at 413 Indian rupees per share, exceeding its initial plan to sell up to 290 million shares. The sale of 313 million shares in ITC represented 2.5% of the company, with ITC's stock dropping nearly 3% to 421.70 rupees following the announcement. British American Tobacco plans to increase its 2025 share buyback program by 200 million pounds as a result of the deal, while remaining ITC's largest shareholder. By Scott Murdoch - British American Tobacco has sold a $1.5 billion stake in Indian consumer goods company ITC at 413 Indian rupees per share, according to a term sheet seen by Reuters. The company sold 313 million shares in ITC, representing 2.5% of ITC, according to the term sheet. This final amount exceeded its initial plan to sell up to 290 million shares in the deal, valued at approximately $1.4 billion. The final sale price represented a 4.8% discount to ITC's closing price of 433.90 rupees on Tuesday. Shares of ITC dropped nearly 3% to 421.70 rupees on Wednesday. The stock was the top loser on both Nifty 50 and the FMCG index. BAT will remain ITC's largest shareholder after the deal, according to LSEG data. Goldman Sachs and Citigroup led the deal, the term sheet showed. The deal is the second major block trade in India this week after IndiGo co-founder Rakesh Gangwal sold a 5.7% stake in the low-cost carrier worth $1.36 billion. BAT said it would increase its 2025 1.1 billion pounds ($1.49 billion) share buyback programme by 200 million pounds as a result of the deal, which is not expected to have any other impact on its annual outlook. The London-listed cigarette maker had last year sold 436.9 million shares, or roughly 3.5% of ITC's outstanding shares, for about $2 billion in what was India's third-largest block deal ever. The British firm in February forecast 1% growth in its annual revenue, citing tax headwinds in key markets such as Bangladesh and Australia.
Hans India
2 days ago
- Business
- Hans India
FMCG, auto shares drag markets lower for 2nd day
Mumbai: Stock markets declined for the second straight day on Wednesday with benchmark Sensex falling by 239 points dragged by losses in FMCG major ITC. The 30-share BSE barome-ter declined 239.31 points or 0.29 per cent to settle at 81,312.32. During the day, it lost 307.61 points or 0.37 per cent to 81,244.02. The 50-issue NSE Nifty dropped 73.75 points or 0.30 per cent to close at 24,752.45. Analysts said the key indices remained largely range-bound ahead of the monthly expiry on Thursday and the release of GDP and industrial production data. FMCG, auto, and pharma shares declined while banking, mainly PSUs, media and energy shares advanced. Among Sensex stocks, ITC fell over 3 per cent after British multinational BAT trimmed its ownership in the conglomerate by divesting a 2.5 per cent stake for Rs 12,927 crore ($1.51 billion) through a block deal. IndusInd Bank, Nestle, UltraTech Cement, Mahindra & Mahindra, Power Grid, Asian Paints, Sun Pharma and Tech Mahindra were also among the lag-gards. Bajaj Finance, Bharti Airtel, ICICI Bank, Adani Ports and HCL Tech were among the gainers. 'The domestic indices remained rangebound with a negative bias, primarily due to the lack of support from FIIs and prevailing premium valuations. A lingering concern over India-US trade relations following the end of the 90-day pause period continues to pose an external risk,' Vinod Nair, Head of Research, Geojit Investments Limited, said. The BSE smallcap gauge climbed 0.50 per cent while midcap index dipped 0.22 per cent. Among sectoral indices, FMCG dropped the most by 1.33 per cent, followed by metal (0.69 per cent), auto (0.67 per cent), consumer durables (0.58 per cent), commodities (0.52 per cent) and consumer discretionary (0.51 per cent). Financial Services, industrials, telecommunication, bankex, capital goods, services and teck were the gainers. 'Markets were extremely range-bound with a negative bias as weak European cues and domes-tic monthly F&O expiry on Thursday prompted investors to trim their holdings. The minutes of the US FOMC (Federal Open Market Committee) meeting held in early May will provide some hint to the markets on the direction of the interest rates going ahead,' Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said.
The Print
2 days ago
- Business
- The Print
British American Tobacco sells 2.5 pc stake in ITC for Rs 12,941 crore
According to the bulk deal data available with the NSE, Tobacco Manufacturers (India) Ltd, an arm of British American Tobacco (BAT), offloaded a total of 31.30 crore equity shares, representing a 2.5 per cent stake in ITC. After the stake sale, BAT's shareholding has dropped to 22.94 per cent in FMCG major ITC from 25.44 per cent earlier. The British firm, however, still remains a significant shareholder of ITC. New Delhi, May 28 (PTI) British multinational BAT Plc on Wednesday trimmed its shareholding in conglomerate ITC by divesting a 2.5 per cent stake for Rs 12,941 crore through open market transactions. The shares were sold in the price range of Rs 413.12 per share to Rs 413.78 apiece. The total transaction value was Rs 12,940.98 crore. After the stake sale, Tobacco Manufacturers (India) Ltd's stake in ITC declined to 17.81 per cent from 20.31 per cent earlier. BAT through its affiliates — Rothmans International Enterprises, Myddleton Investment Company and Tobacco Manufacturers (India) Ltd — owned a combined 25.44 per cent stake in ITC Ltd at the end of the March quarter. Details of the buyers of ITC's shares could not be ascertained on the National Stock Exchange (NSE). ITC shares fell 1.19 per cent to close at Rs 421 per piece on the NSE. In a regulatory filing on the London Stock Exchange, British American Tobacco (Group) on Wednesday said it has completed the block trade of 31.30 crore ordinary shares in ITC Ltd to institutional investors by way of an accelerated book build process. The block trade shares represent 2.5 per cent of ITC's issued ordinary share capital. The net proceeds from the block trade amount to Rs 12,100 crore, it said. BAT said that the transaction will provide the group greater financial flexibility as it delivers on its commitment to invest behind transformation, deleverage and enhance shareholder returns. The net proceeds from the trade will also be utilised to extend the Group's existing share buyback programme announced on March 18, 2024, by an additional 200 million pounds, taking the total amount to be repurchased in 2025 to 1.1 billion pounds, it added. 'The extension will begin following completion of the latest tranche of the programme announced on 29 April 2025 and is expected to complete no later than 31 December 2025,' BAT said. BAT's initial investment in ITC dates back to the early 1900s, and the two companies have a longstanding, mutually beneficial relationship. As one of India's leading FMCG enterprises, ITC has delivered significant value for its shareholders. '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. 'Whilst this transaction supports delivery on our commitments to BAT shareholders, we continue to view ITC as a core strategic component of our global footprint as we partner on business opportunities in India. I am confident that ITC, under the stewardship of its current management, will continue to create further value for its shareholders,' BAT's Chief Executive Tadeu Marroco said. In March 2024, BAT Plc sold a 3.5 per cent stake in ITC Ltd for Rs 17,485 crore. BAT is in the multi-category consumer goods business. Its strategic portfolio comprises global cigarette brands and a growing range of nicotine and smokeless tobacco products, including vapour brand Vuse; heated product brand 'glo' and Velo, a modern oral (nicotine pouch) brand. PTI HG MR This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
