BAT to offload up to 15.3% stake in ITC Hotels via block deal

New Delhi: British American Tobacco (BAT) plans to sell 7 per cent–15.3 per cent of its stake in ITC Hotels through a block deal, the company said in a statement on Thursday.

Its subsidiaries—Tobacco Manufacturers (India) Ltd, Myddleton Investment Company Ltd and Rothmans International Enterprises Ltd—will offload the shares via an accelerated bookbuild, with the final size tailored to maximise pricing.

BAT said the proceeds will support its goal of reducing leverage to 2–2.5x adjusted net debt/adjusted EBITDA (ex-Canada) by end-2026.

CEO Tadeu Marroco noted that BAT’s direct holding in ITC Hotels resulted from ITC’s demerger earlier this year, adding that the stake is not strategic for the group.

ITC Hotels, founded in 1975, now operates over 140 hotels across more than 90 destinations. The company has been listed since January 2025, after its separation from ITC Ltd. BAT currently owns around 15.3 per cent of the hotel chain, while ITC holds 39.85 per cent.

ITC Hotels’ shares, listed at Rs 188 on the BSE and Rs 180 on the NSE, were valued lower than January’s special price discovery session. The stock closed flat at Rs 207.80 on Thursday.