British American Tobacco (BAT) will pare its shareholding in ITC Hotels, the company said on Thursday, adding that it was looking to offload between 7-15.3% of its stake via block deals. The UK company’s direct shareholding of 15.3% in ITC Hotels was a result of the demerger process that was completed by ITC earlier this year. The current market value of its holding is Rs 6,600 crore.
According to a term sheet viewed by FE, BAT may offload 145.8 million shares at a floor price of Rs 205.65 apiece in the secondary market on Friday, which is at a 1% discount to ITC Hotels’ closing price of Rs 207.75 apiece on the BSE on Thursday.
What will be the value of the stake sale?
The value of the stake sale (around 7%)will be nearly Rs 3,000 crore. BAT affiliates Tobacco Manufacturers (India), Myddleton Investment and Rothmans International Enterprises will offload the shares by way of an accelerated bookbuild process.
What did the BAT Ceo say?
BAT CEO Tadeu Marroco said that a direct stake in ITC Hotels was not a strategic holding for the company. He said that the proceeds from the transaction would support progress towards its 2026 deleveraging plan. This will be the third instance in nearly two years that BAT has cut its stake in ITC group companies. In March 2024 and May 2025, BAT had trimmed its stake in ITC by 3.5% and 2.5% respectively, bringing its shareholding down to 22.9% in the cigarette-to-FMCG company and relinquished veto rights. ITC has a 39.85% stake in ITC Hotels.