BAT To Sell As Much As $2.1 Billion Of ITC Stock In Block Trade
British American Tobacco Plc, the maker of Lucky Strike cigarettes, is selling as much as $2.1 billion of shares in Indian partner ITC Ltd. in a block trade.
(Bloomberg) -- British American Tobacco Plc, the maker of Lucky Strike cigarettes, is selling as much as $2.1 billion of shares in Indian partner ITC Ltd. in a block trade.
London-listed BAT is offering 436.9 million shares at 384 rupees to 400.25 rupees each, according to terms seen by Bloomberg, confirming a Bloomberg News report from Monday. That’s a discount of as much as 5% from Tuesday’s closing price for ITC.
Shares of BAT rose 2.7% to 2,382p at 11:41 a.m. in London. ITC shares fell 1.2% to close at 404.45 rupees. Bank of America Corp. and Citigroup Inc. are arranging the sale.
BAT owns about 29% of Mumbai-listed ITC, according to data compiled by Bloomberg. ITC, an Indian conglomerate that gets a large portion of its revenue from cigarettes, also runs a variety of other businesses including food products and packaging. It also has a hotel business that it’s in the process of spinning off.
--With assistance from Julia Fioretti, Dinesh Nair, Andy Hoffman and P R Sanjai.
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