Further to the above, and from BATS themselves, this;
Launch of Proposed Block Trade of up to 436,851,457 Ordinary Shares in ITC Limited
BAT PLC ("BAT" or the "Group") announces that its wholly-owned subsidiary Tobacco Manufacturers (India) Limited ("TMI") intends to sell up to 436,851,457 ordinary shares (the "Block Trade Shares") in ITC Limited ("ITC") to institutional investors by way of an accelerated bookbuild process (the "Block Trade"), subject to customary closing conditions. The Block Trade Shares represent up to c.3.5 per cent of ITC's issued ordinary share capital.
ITC is a valued associate of BAT in an attractive market with long-term growth potential where BAT benefits from exposure to the world's most populous market. 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 and BAT continues to be fully supportive of ITC's management team, performance and strategy.
Following completion of the proposed Block Trade, BAT will remain a significant shareholder of ITC, with a c.25.5 per cent holding.
BAT intends to use the net proceeds of the Block Trade to buy back BAT shares over a period ending December 2025, starting with £700m in 2024. We will continue to allocate operating cashflow to fund investment in our transformation and to further deleverage.
Going forward the key elements of capital allocation at BAT will include:
· Continued investment in our transformation
· Progressive dividends
· Continued deleverage to a new range of 2-2.5x adjusted net debt / adjusted EBITDA.
· Sustainable share buybacks
https://www.investegate.co.uk/announcem ... s-/8083585This has obviously gone down well, with BATS being up 3% as I type.
Ian (I hold BATS).