BAT to Utilise ITC Block Deal Proceeds to Fund Share Buyback Plan

After receiving over ₹12,100 crore via the ITC block deal, British American Tobacco (BAT) has pledged to increase its 2025 share buyback programme by £200 million, taking the total to 1.1 billion pounds ($1.49 billion), following the ITC stake sale.

Last year, the London-listed cigarette maker sold 3.5% of ITC's outstanding shares, valued at $2 billion.

“Further to our announcement on 27 May 2025, British American Tobacco p.l.c. has completed the block trade of 313,000,000 ordinary shares in ITC Limited to institutional investors by way of an accelerated bookbuild process. The Block Trade Shares represent 2.5 per cent of ITC' issued ordinary share capital. Net proceeds from the Block Trade amount to Rs 12,100 crore (approximately £1.05bn at current exchange rates),” said BAT in a filing at the London Stock Exchange.

“The transaction will provide BAT greater flexibility as it delivers on its commitment to invest behind transformation, deleverage and enhance shareholder returns. The net proceeds from the Block Trade will also be utilised to extend the Group’s existing share buyback programme announced on 18 March 2024 (the “Programme”) by an additional £200 million, taking the total amount to be repurchased in 2025 to £1.1 billion,” added BAT.

As of 12:47 pm, Shares of ITC Limited were down by 3% at ₹420.66 apiece.

Previously, BAT held 25.4% stake in ITC via three entities. Tobacco Manufacturers (India) Ltd holds 20.3% stake, while Myddleton Investment Co. Ltd. owes around a 3.9% stake. Rothmans International Enterprises Ltd holds close to 1.2% of British American Tobacco's stakes in ITC. This makes British American Tobacco, the single-largest shareholder in ITC. Out of the 16 directors on ITC’s board, two are from Tobacco Manufacturers (India).