ITC Hotels Block Deal: BAT To Offload Shares Worth Nearly Rs 3,000 Crore

British American Tobacco Plc. will offload shares worth nearly Rs 3,000 crore in ITC Hotels Ltd. via large deals on Friday. The company will sell shares at a floor price of Rs 205.65 in the secondary market, according to a termsheet.

BAT affiliates Tobacco Manufacturers (India) Ltd., Myddleton Investment Co. and Rothmans International Enterprises Ltd., intend to sell between 7% and 15.3% of the share capital in ITC Hotels to investors by way of an accelerated bookbuild process, the company said in a regulatory filing.

The final number of shares sold will be determined to optimise the overall pricing outcome to the Group, the filing said.

The UK company's direct shareholding of 15.3% in ITC Hotels was a result of the demerger process that was completed by ITC Ltd. earlier this year. The current market value of its equity holding is Rs 6,600 crore.

A direct stake in ITC Hotels is not a strategic holding for BAT, said CEO Tadeu Marroco, adding that the proceeds from this transaction will further support continued progress towards their stated 2026 deleveraging plan.

British American Tobacco held a 22.9% stake in ITC as of September. ITC owns 39.85% in ITC Hotels.

Shares of ITC Hotels settled flat at Rs 207.75 apiece on the BSE, ahead of the announcement, compared to a 0.2% advance in the benchmark Sensex. The stock has risen 21% since listing in January.