&w=3840&q=100)
BAT evaluating sale of small part of ITC stake, confirms in LSE filing
As per the terms of the transaction, the deal size is pegged at $1.36 billion. The shares are being offered at ₹400, a 7.8 per cent discount to the closing price of ₹433.90 per share.
As ITC goes ex-dividend by ₹7.85 per share, the discount works out to be 6.5 per cent versus the block deal discount of 8 per cent, bankers said.
In a filing with the London Stock Exchange (LSE), BAT said that the transaction would provide increased financial flexibility as it delivers on its commitment to invest in transformation, deleverage, and sustainable shareholder returns.
Tadeu Marroco, chief executive of BAT, said in a statement: "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 initial investment in ITC dates back to the early 1900s, and the two companies have a longstanding, mutually beneficial relationship, the maker of Dunhill and Lucky Strike said.
Following completion of the proposed block trade, BAT will remain a significant shareholder of ITC, with a 23.1 per cent holding. Prior to this, BAT's holding in ITC was 25.45 per cent.
On March 13, 2024, BAT had sold a 3.5 per cent equity stake in ITC. The block trade sale generated net proceeds, after transaction costs and taxes, of £1.6 billion, which it used to initiate its buyback programme.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
7 hours ago
- Time of India
Optimal time to open, grow hospitality brands in India: ITC Hotels MD
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Heightened investor interest and evolving customer needs have made it the optimal time to open and expand new hospitality brands in India , said Anil Chadha, MD, ITC Hotels "India is going through a phase, and it's not just large corporates and big-ticket investors who would be able to afford hotels anymore. A chain like ours straddles across segments to cater to all kinds of customer needs, as they changed post the Covid-19 pandemic," Chadha told ET in an interview. "You could build a 50-room or a 30-room hotel depending on the brand and your propensity to earn in a city. If somebody came to us three years ago and said I want you to manage our 30-room hotel, we would have said no. But today, we see a need," he conglomerate ITC's hotel business was demerged effective January 1, spawning a separate listed hospitality entity. Shares of ITC Hotels started trading on the stock exchanges on January said ITC Hotels is exploring opportunities to take its famed Bukhara dining brand overseas. It is also in talks to enter the branded residences segment."With our quality of service, we can add value to the branded residences space, and we are in discussions. It's not just about the luxury segments," he said."For instance, we also have our boutique brand Storii as a concept, and we are exploring if we can build Storii villas around a Storii property. In the Welcomhotel space, we are exploring opportunities for residences," he Hotels reported consolidated revenue from operations of '816 crore for the quarter ended June, up 16% year-on-year. Profit surged 54% to '134 highlighted the company's improving operational performance. "This applies to occupancies, average room rates, and commanding a much better revenue per available room. For domestic owned hotels, our occupancies have improved from 62% in quarter one of financial year 2024 to 73% in quarter one of financial year 2026," he said. "In terms of our revenue per available room performance across markets, as per CoStar data for year to date May 2025, for our domestic owned hotels in the luxury, upper upscale and upscale segments, ITC Hotels is commanding a premium of 34% over the industry."New ITC hotels will be opened in locations such as Kochi, Jaipur, Gwalior, Bhopal, Bodh Gaya, Udaipur, Rishikesh, and Wayanad this year. Chadha said the newly-opened ITC Ratnadipa in Sri Lanka has received a positive response, and that the company is now getting offers for more hotel opportunities in the island nation. "We have a small Fortune hotel in Nepal, and have signed another Welcomhotel about seven months ago. We are also exploring opportunities in the Middle East," he said ITC Hotels has a very strong zero-debt balance sheet, and is open to both inorganic growth opportunities and acquisitions.
Economic Times
18 hours ago
- Economic Times
NAREDCO President urges govt to cap GST on building materials at 18%
ANI NAREDCO President urges govt to cap GST on building materials at 18% New Delhi: G Hari Babu, President of National Real Estate Development Council (NAREDCO) has urged the government to bring the Goods and Services Tax rates of building materials to the bracket of 18 per cent. Speaking at the sidelines of NAREDCO's 17th edition of National Convention in the national capital, NAREDCO President reiterated industry's demand of Input Tax Credit (ITC) under the Central Goods and Services Act (CGST) on commercial assets constructed for leasing purposes. "One thing we are asking is the input credit facility for the builders because now it is five percent fixed rate and for affordable housing already one percent is there up to forty five lakh. We are requesting them to increase to sixty lakh. And as far as the material concern there are certain areas where twenty eight per cent GST is applicable for example cement and other materials so it is not a luxury and we want to bring that also to eighteen per cent level. So no GST should be there on building materials more than eighteen per cent that is demand," he added. GST has significantly impacted construction industry and real estate industry. GST on construction services and materials is complex, with various rates applied based on the type of service, material, and project. Construction of affordable housing projects attracts a reduced GST rate of 1 per cent while different construction materials have varying GST rates from 5 per cent to 28 per cent. During the curtain raiser, Delhi Chief Minister Rekha Gupta assured the industry members that "Government just needs 2 years to revamp Delhi and fill the bottleneck of past 10 years of developmental backlog. "We urge the industry members and developers to come up with the PPP models for developing state of the art hospitals, schools, shopping malls, accommodations and infrastructure and the government will give the full policy and funding support," she added. Speaking at the event, Hari Babu affirmed the vision of the body and said, "From retrofitting existing structures to building climate-smart homes, the sector must adopt a forward-thinking approach that doesn't wait for regulation to act responsibly. Today's discussions are not just about vision, they are about setting actionable goals."Harsh Vardhan Bansal, President, NAREDCO Delhi, shared how the capital's real estate sector is evolving, "Delhi presents a unique case where infrastructure demand is high, yet land and environmental constraints are very real. The question is not whether we can grow, but how we can grow smarter. "Our focus at NAREDCO Delhi is to ensure that housing, commercial development, and urban services all move in the direction of sustainability. We are working closely with policymakers and urban planners to push for incentives that reward eco-friendly practices and penalize shortsighted developments. The future belongs to those who are thinking beyond the next quarter, and our goal is to build a future-ready, climate-conscious capital city," Bansal added.
Time of India
20 hours ago
- Time of India
NAREDCO President urges govt to cap GST on building materials at 18%
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Popular in Economy 1. Central banks are building a haven of bullion assets New Delhi: G Hari Babu, President of National Real Estate Development Council ( NAREDCO ) has urged the government to bring the Goods and Services Tax rates of building materials to the bracket of 18 per at the sidelines of NAREDCO's 17th edition of National Convention in the national capital, NAREDCO President reiterated industry's demand of Input Tax Credit (ITC) under the Central Goods and Services Act (CGST) on commercial assets constructed for leasing purposes."One thing we are asking is the input credit facility for the builders because now it is five percent fixed rate and for affordable housing already one percent is there up to forty five lakh. We are requesting them to increase to sixty lakh. And as far as the material concern there are certain areas where twenty eight per cent GST is applicable for example cement and other materials so it is not a luxury and we want to bring that also to eighteen per cent level. So no GST should be there on building materials more than eighteen per cent that is demand," he has significantly impacted construction industry and real estate industry. GST on construction services and materials is complex, with various rates applied based on the type of service, material, and project. Construction of affordable housing projects attracts a reduced GST rate of 1 per cent while different construction materials have varying GST rates from 5 per cent to 28 per the curtain raiser, Delhi Chief Minister Rekha Gupta assured the industry members that "Government just needs 2 years to revamp Delhi and fill the bottleneck of past 10 years of developmental backlog."We urge the industry members and developers to come up with the PPP models for developing state of the art hospitals, schools, shopping malls, accommodations and infrastructure and the government will give the full policy and funding support," she at the event, Hari Babu affirmed the vision of the body and said, "From retrofitting existing structures to building climate-smart homes, the sector must adopt a forward-thinking approach that doesn't wait for regulation to act responsibly. Today's discussions are not just about vision, they are about setting actionable goals."Harsh Vardhan Bansal, President, NAREDCO Delhi, shared how the capital's real estate sector is evolving, "Delhi presents a unique case where infrastructure demand is high, yet land and environmental constraints are very real. The question is not whether we can grow, but how we can grow smarter."Our focus at NAREDCO Delhi is to ensure that housing, commercial development, and urban services all move in the direction of sustainability. We are working closely with policymakers and urban planners to push for incentives that reward eco-friendly practices and penalize shortsighted developments. The future belongs to those who are thinking beyond the next quarter, and our goal is to build a future-ready, climate-conscious capital city," Bansal added.
