The stake sale in ITC is good news also because BAT is now unlikely to sell more shares in near future for it doesn t want its shareholding in ITC to fall below 25%. BAT s ownership in ITC has now fallen to 25.5% from 29% earlier.
Shares of ITC fell on reports of BAT potentially selling $2-3 billion worth of shares. The divestment, subject to regulatory clearances, has caused a supply hangover on ITC shares.
BAT will likely exit ITC hotels business post demerger and there is no strategic intent from BAT to be a minority shareholder of a hotel company in the Indian market, the CEO added