British American Tobacco plans to divest 7% to 15.3% of its stake in ITC Hotels as part of a strategy to optimize its financial leverage and concentrate on core business operations.
Target Information
British American Tobacco p.l.c. (BAT) has announced plans to divest a portion of its stake in ITC Hotels Limited, with intentions to sell between 7% and approximately 15.3% of the issued ordinary share capital through an accelerated bookbuild process. This transaction, which is subject to standard closing conditions, represents BAT's strategic move to optimize their financial positioning following a recent demerger. ITC Hotels operates over 140 hotels across more than 90 destinations in the Indian subcontinent and emerged as a standalone publicly listed entity in January 2025.
ITC Hotels was formerly a part of ITC Limited before the demerger, during which BAT acquired a 15.3% stake tied to its shareholding in ITC at that time. This divestment is aligned with BAT's broader strategy to improve their leverage ratio and focuses on reducing their adjusted net debt to adjusted EBITDA leverage corridor, aiming for a targeted range of 2-2.5x by the end of 2026.
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Industry Overview in India
The hospitality industry in India is a dynamic and rapidly growing sector, driven by an increase in tourism, domestic travel, and large-scale business events. With over 1.3 billion inhabitants, India is witnessing a significant rise in disposable i
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