SAM, HSF, AZB, Ashurst advise on BAT’s $1.4B strategic stake disinvestment in ITC

British American Tobacco has made a strategic divestment of 2.5% stake in ITC Limited by way of a secondary transfer on the stock exchanges. 

The deal is valued at $1.4 billion.

Shardul Amarchand Mangaldas & Co advised British American Tobacco on this transaction.

The transaction team was led by Mithun V. Thanks (Partner), Manjari Tyagi (Partner), Deepika Goyal (Principal Associate), Shraddha Suryavanshi (Principal Associate), Doorva Tripathi (Senior Associate), Pankhuri Swarnim (Associate) and Kashvi Vachhani (Associate).

Herbert Smith Freehills advised BAT on the governance/corporate procedures of BAT under the laws of United Kingdom. Cains Advocates Limited, Isle of Man provided local law assistance to TMI to undertake the Divestment.

AZB & Partners advised Citigroup Global Markets India Private Limited and Goldman Sachs (India) Securities Private Limited, the brokers on the transaction, on the Block Trade Agreement.

Ashurst advised Citigroup Global Markets India and Goldman Sachs (India) Securities on certain overseas aspects of the block trade.

This transaction involved the sale of 313 million shares at ₹413 per share, representing a 4.8% discount to ITC's closing price of ₹433.90 on May 27, 2025.

The proceeds from this divestment are earmarked to bolster BAT's 2025 share buyback program, increasing it by £200 million to a total of £1.1 billion ($1.49 billion) . This move aligns with BAT's broader strategy to enhance shareholder returns while managing its capital structure effectively.

Despite this sale, BAT remains ITC's largest shareholder, retaining a 23.1% stake in the company. British American Tobacco p.l.c. is a British multinational company that manufactures and sells cigarettes, tobacco and other nicotine products including electronic cigarettes.

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