British American Tobacco $BATS (+0.61%) has completed the sale of 187,500,000 ordinary shares in ITC Hotels Limited, representing 9% of the company's issued share capital, the tobacco group has announced.
The block trade, which was conducted through an accelerated bookbuilding process, raised net proceeds of INR 38.2 billion (equivalent to approximately £315 million at current exchange rates). Following the transaction, BAT continues to hold a 6.3% stake in ITC Hotels.
According to the company's announcement, the proceeds will be used to advance BAT's goal of achieving a debt corridor of 2 to 2.5 times adjusted net debt to adjusted EBITDA (adjusted for Canada) by the end of 2026.
The transaction follows an initial announcement by BAT on Thursday regarding the planned block trade.
The company did not disclose the investors who acquired the shares.
BAT employs more than 48,000 people worldwide and reported sales of £25.9 billion and adjusted operating profit of £11.9 billion for 2024. The company has set itself the goal of attracting 50 million adult consumers to its smoke-free products by 2030 and generating 50% of its revenue from them by 2035.
The securities traded in this transaction have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements, according to the press release.