The offering floor price was set at 205.65 rupees apiece, representing a 1% discount to the stock’s close on Thursday, the terms showed. A 9% stake would be worth about US$430 million ($556.48 million) at the floor price.
BAT shares rose as much as 1.5% on Thursday after the sale was disclosed, before paring gains.
ITC Hotels is majority-owned by ITC Ltd, an Indian cigarette maker that also has other businesses including food products and packaging. Last year, BAT sold part of its stake in ITC for about US$2 billion to fund a share buy-back programme.
BAT is under pressure to reduce debt by demerging from non-strategic holdings, and to fund investment in innovation. It has already invested significantly in research and development of alternative nicotine products, such as vapes and Velo nicotine pouches, which it says are less harmful than cigarettes.
See also: More Singapore-listed companies tapping digital private-market exchanges
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