MUMBAI: British American Tobacco, the second largest shareholder of ITC Hotels, is looking to sell 7% stake in the hospitality company, worth Rs 3,000 crore, on Friday. The stake-sale is part of its broader strategy to exit ITC Hotels.The maker of Dunhill and Rothmans cigarettes is looking to sell its ITC Hotels shares at Rs 205.7 apiece, a 1% discount to the stock’s Thursday closing price on the NSE, the term sheet showed.BAT owns 15.3% of ITC Hotels, worth Rs 6,500 crore. It inherited the stake through its shareholding in ITC, which hived off the hospitality business in Jan.
Check-Out: Tobacco Giant Holds Over 15% Stake In Hospitality Co
“A direct stake in ITC Hotels is not a strategic holding for BAT,” CEO Tadeu Marroco said. On Thursday, BAT announced its 100% subsidiaries, Tobacco Manufacturers (India), Myddleton Investment and Rothmans International Enterprises, intend to offload between 7% and 15.3% of ITC Hotels to reduce debt and exit a non-strategic asset. BAT currently holds 22.9% in ITC, with its initial investment dating back to the early 1900s. In May, BAT sold about 2.5% of ITC, raising $1.4 billion, and in March 2024, it offloaded 3.5% of ITC, collecting $2 billion.
