British American Tobacco (BAT) has announced the sale of a 2.5% stake in ITC Ltd, generating Rs 12,941 crore (approximately £1.3 billion). This strategic move reduces BAT’s holding in ITC to 22.94% and is designed to improve the company’s financial flexibility.

The sale, achieved through open market transactions, will primarily fund further transformation initiatives and enhance returns for BAT shareholders. A significant portion of the proceeds will be allocated to extend BAT’s existing share buyback program by an additional £200 million.

This action demonstrates BAT’s ongoing confidence in ITC’s long-term strategic value, even as they strategically reallocate assets to optimize their financial position for future growth and investment opportunities. The increased financial flexibility allows BAT to pursue key investments and further reward their investors.