LONDON (ShareCast) - (Sharecast News) - British American Tobacco said on Tuesday that it was planning to sell around 2.3% of its shareholding in India's ITC.
The tobacco firm will sell the stake to institutional investors in an accelerated bookbuild.

It said the transaction will provide BAT with increased financial flexibility "as it delivers on its commitment to invest in transformation, deleverage and sustainable shareholder returns".

Proceeds from the sale will be used to progress to within the target 2-2.5x adjusted net debt/adjusted EBITDA leverage corridor (adjusted for Canada) by the end of 2026 and to continue the sustainable buyback programme by enabling an intended £200m increase in the share buyback to a total of £1.1bn in 2025.

Once the proposed bookbuild completes, BAT will remain a significant shareholder of ITC, with a stake of around 23.1%.

Chief executive Tadeu Marroco said: "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."

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