BAT to Sell Stake in ITC Hotels

23 Oct 2024 , 10:17 AM

According to chief executive Tadeu Marroco, British American Tobacco Plc (BAT), ITC’s largest stakeholder, intends to sell its interest in the Indian conglomerate’s soon-to-be-demerged hotel division.

According to him, BAT is also looking into ways to “unlock shares” in ITC in order to provide “financial flexibility” going forward.

Marroco stated without providing any details that BAT is also seeking to introduce its oral tobacco products in India.

As a foreign direct investment, BAT will directly own 15.32% of the demerged listed company, ITC Hotels. According to the demerger paperwork, this will make BAT the second-largest shareholder in the hospitality company, behind ITC’s 39.93% promoter position.

On October 4, the National Company Law Tribunal gave its approval to the demerger plan.

ITC previously stated that it anticipates finishing the demerger process, including ITC Hotels’ public listing, this fiscal year. In addition to being the second-biggest listed firm for food FMCG items, ITC is a leader in the cigarette, paper, and packaging industries and the second-largest hospitality company in India.

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