REG - British Amer.Tobacco - Launch of Proposed Block Trade of ITC Shares

British American TobaccoAnnouncement

27/05/2025 16:15

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RNS Number : 2821K  British American Tobacco PLC  27 May 2025

 

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION.

 

British American Tobacco p.l.c.

 

27 May 2025

 

Launch of Proposed Block Trade of ITC Shares

 

British American Tobacco p.l.c. ("BAT" or the "Group") announces that its
wholly-owned subsidiary Tobacco Manufacturers (India) Limited ("TMI") intends
to sell c.2.3 per cent of the issued ordinary share capital in ITC Limited
("ITC") (the "Block Trade Shares") to institutional investors by way of an
accelerated bookbuild process (the "Block Trade"), subject to customary
closing conditions.

The transaction will provide BAT with increased financial flexibility as it
delivers on its commitment to invest in transformation, deleverage and
sustainable shareholder returns. Proceeds will be used to progress to within
the target 2-2.5x adjusted net debt/adjusted EBITDA leverage corridor
(adjusted for Canada) by the end of 2026 and to continue our sustainable
buyback programme by enabling an intended £200m increase in the share buyback
to a total of £1.1bn in 2025.

BAT's initial investment in ITC dates back to the early 1900s and the two
companies have a longstanding, mutually beneficial relationship. As one of
India's leading FMCG enterprises, ITC has delivered significant value for its
shareholders. Following completion of the proposed Block Trade, BAT will
remain a significant shareholder of ITC, with a c.23.1 per cent holding.

Tadeu Marroco, Chief Executive of BAT, said "ITC is a valued associate of BAT
in an attractive geography with long-term growth potential where BAT benefits
from exposure to the world's most populous market. Whilst this transaction
supports delivery on our commitments to BAT shareholders, we continue to view
ITC as a core strategic component of our global footprint as we partner on
business opportunities in India. I am confident that ITC, under the
stewardship of its current management, will continue to create further value
for its shareholders."

Further details of the value of net proceeds received will be shared once the
transaction has completed. Other than the intended increase to the 2025 share
buyback, the transaction has no impact on 2025 or 2026 guidance.

The person responsible for arranging for the release of this announcement on
behalf of British American Tobacco p.l.c. is Caroline Ferland, Group Company
Secretary.

 

ENDS

Enquiries

Media Centre

+44 (0) 20 7845 2888 (24 hours) | press_office@bat.com | @BATplc
(https://twitter.com/BATplc)

 

Investor Relations

Victoria Buxton: +44 (0)20 7845 2012 | IR_team@bat.com
(mailto:IR_team@bat.com)

About BAT

 

BAT is a leading global multi-category consumer goods business. Underpinned by
world-leading science and R&D, our purpose is to create A Better
Tomorrow™ by Building a Smokeless World where, ultimately, cigarettes have
become a thing of the past. BAT's purpose is backed by Omni™, an
evidence-based manifesto for change which captures its commitment and
progress.

 

BAT employs more than 48,000 people and, in 2024, generated revenue of
£25.9bn, with an adjusted profit from operations of £11.9bn.

 

BAT's aim is to have 50 million adult consumers of its Smokeless products by
2030 and generate 50% of its revenue from Smokeless products by 2035. BAT's
portfolio is made up of a growing range of nicotine and smokeless tobacco
products which include its Vapour brand Vuse; Heated Product brand glo; and
Velo, its Modern Oral (nicotine pouch) brand. After only a decade of
investment in these products, the Group has delivered New Category revenue of
£3.4bn in 2024, with strong progress in profitability on a category
contribution level. BAT's portfolio reflects our commitment to meeting the
evolving and varied preferences of today's adult consumers.

 

BAT is also reducing the use of natural resources, improving livelihoods, and
delivering on its climate goals to be Net Zero across its value chain by 2050.
BAT received a Triple A rating from CDP in 2024 for its disclosures on Climate
Change, Water Security, and Forests, showcasing its commitment to
environmental transparency and action.

 

A sustainability rating or award is not a recommendation to buy, sell or hold
securities. A sustainability rating or award may be subject to withdrawal or
revision at any time. Each sustainability rating and award should be evaluated
separately of any other sustainability rating. The methodologies of any
sustainability rating or award presented here may not be the same as those of
other sustainability ratings, awards or methodologies that may be used by our
stakeholders and may emphasise different aspects of sustainability practices
and performance, and, thus, may not be representative of our sustainability
performance in all respects.

 

Further information

 

This announcement contains inside information in relation to British American
Tobacco p.l.c. for the purposes of Article 7 of the Market Abuse Regulation.

 

The securities referred to herein will not be, and have not been, registered
under the United States Securities Act of 1933, as amended (the "Securities
Act") and may not be offered or sold in the United States absent registration
or an applicable exemption from the registration requirements of the
Securities Act.

 

Forward-looking statements

 

This release contains certain forward-looking statements, including
"forward-looking" statements made within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995. These statements are often, but not
always, made through the use of words or phrases such as "believe,"
"anticipate," "could," "may," "would," "should," "intend," "plan,"
"potential," "predict," "will," "expect," "estimate," "project," "positioned,"
"strategy," "outlook", "target" and similar expressions. These include
statements regarding our deleverage target, Smokeless customer target
ambition, New Categories revenue targets and our sustainability targets, as
well as statements regarding the intended sale of the Block Trade Shares, the
increase in the share buyback programme.

 

All such forward-looking statements involve estimates and assumptions that are
subject to risks, uncertainties and other factors. It is believed that the
expectations reflected in this release are reasonable but they may be affected
by a wide range of variables that could cause actual results to differ
materially from those currently anticipated. A review of the reasons why
actual results and developments may differ materially from the expectations
disclosed or implied within forward-looking statements can be found by
referring to the information contained under the headings "Cautionary
Statement", "Group Principal Risks" and "Group Risk Factors" in the 2024
Annual Report and Form 20-F of BAT.

 

Additional information concerning these and other factors can be found in
BAT's filings with the U.S. Securities and Exchange Commission ("SEC"),
including the Annual Report on Form 20-F and Current Reports on Form 6-K,
which may be obtained free of charge at the SEC's website, http://www.sec.gov
(http://www.sec.gov) and BAT's Annual Reports, which may be obtained free of
charge from the BAT website www.bat.com (http://www.bat.com) .

 

Past performance is no guide to future performance and persons needing advice
should consult an independent financial adviser. The forward-looking
statements reflect knowledge and information available at the date of
preparation of this release and BAT undertakes no obligation to update or
revise these forward-looking statements, whether as a result of new
information, future events or otherwise. Readers are cautioned not to place
undue reliance on such forward-looking statements.

 

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