BAT plans to sell its stake in ITC Hotels, using proceeds to reduce debt

Dec.05

British American Tobacco (BAT) plans to sell all or part of its stake in ITC Hotels via an accelerated bookbuild, with the sale size expected to be up to 15.3% of the company’s shares. The company says the proceeds will be used to reduce debt and bring its leverage back within the target range.

Key Points

BAT plans to sell 7% to approximately 15.3% of its stake in ITC Hotels through an accelerated bookbuild, offering shares to institutional investors via a block trade.
ITC Hotels was spun off from ITC Limited in early 2025; BAT inherited roughly 15.3% of the company as a result of its prior shareholding in ITC Limited.
BAT says that holding equity in ITC Hotels is not part of its core strategic focus, and the planned sale aims to optimize the company’s capital structure and support debt reduction.
The proceeds are intended to help bring BAT’s leverage down to its target range of 2–2.5 times adjusted net debt / adjusted EBITDA.

2Firsts, December 5, 2025 — British American Tobacco (BAT) announced on its official website, as cited by Reuters and other media outlets, that it plans to sell all or part of its stake in ITC Hotels through an accelerated bookbuild, with the aim of optimizing its capital structure and reducing debt.

According to BAT’s statement, its subsidiaries—Tobacco Manufacturers (India) Limited, Myddleton Investment Company Limited and Rothmans International Enterprises Limited—intend to offer a combined 7% to approximately 15.3% of ITC Hotels’ outstanding shares to institutional investors via a block trade.

ITC Hotels was spun off from ITC Limited and listed as an independent company in January 2025. Because BAT previously held shares in ITC Limited, it automatically received a corresponding stake in ITC Hotels after the demerger. Its current holding stands at roughly 15.3%.

BAT stated that directly holding shares in ITC Hotels is not aligned with its core strategic priorities, and that selling the stake will support capital structure optimization. Proceeds from the transaction will be used to repay debt and help reduce the company’s leverage to the target range of 2–2.5 times adjusted net debt / adjusted EBITDA, thereby strengthening financial resilience.

BAT CEO Tadeu Marroco said the company will continue to focus on its core business and global development, while using the capital returned through this sale to enhance shareholder value.

As the transaction is currently only a “proposed” block trade, the final size of the sale will depend on market pricing and underwriting conditions. BAT said it will disclose the final number of shares sold and the net proceeds once the deal is completed.

Cover image: BAT

References:

[1] Proposed Block Trade of ITC Hotels Shares

Also Read:

[1] Canadian Media Investigation: BAT’s Nicotine Pouch ZONNIC Sparks Ongoing Controversy as Regulatory Gaps in Canada Come Under Scrutiny

[2] Kenya Court of Appeal Halts BBC Defamation Case Linked to BAT Bribery Documentary

[3] British American Tobacco’s Irish unit says VELO pouch sales hit 29m, net revenue climbs to €33.75m

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