British American Tobacco Chief Executive Tadeu Marroco
British American Tobacco (BAT), which has been the largest shareholder of ITC Ltd, on Tuesday said its shareholding in the diversified conglomerate is a “strategic investment” and “not a financial investment.
The UK-based cigarette major on last Wednesday sold 2.5 per cent stake in the Kolkata-headquartered conglomerate worth around ₹12,900 crore ($1.5 billion) via block deals.
“The ITC stake is still for us a strategic investment, It is not a financial investment,” British American Tobacco Chief Executive Tadeu Marroco told analysts when asked how should investors think about BAT’s shareholding in ITC Ltd after it diluted 2.5 per cent stake in the cigarette-to-soap major.
“ITC is a very well-oiled and run company, and leader in tobacco and cigarettes. And, we have a multi-layer relationship with ITC coming back for many years. We have some inter-party relations with them in leaf, in IT and we have expectations that new category can be a big factor in the Indian market in the future. And we want to preserve as a consequence a relevant stake in ITC,” Marroco pointed out.
He said BAT will keep its two directors on ITC Ltd board so that it has “influence” on the board.
Following the latest transaction, BAT’s stake in ITC reduced to 22.9 per cent from 25.4 per cent.
While announcing the 2025 First Half Pre-Close Trading Update, BAT on Tuesday said that partial monetisation of its ITC stake enabled it to increase financial flexibility. “I am pleased with our progress in increasing financial flexibility driven by continued strong operating cash conversion and the completion of a partial monetisation of our stake in ITC,” Marroco added.
BAT earlier said the net proceeds from the block trade will also be utilised to extend the Group’s existing share buyback programme announced on March 18, 2024, by an additional £200 million, taking the total amount to be repurchased in 2025 to £1.1 billion.
Published on June 3, 2025
Anurag Dhole is a seasoned journalist and content writer with a passion for delivering timely, accurate, and engaging stories. With over 8 years of experience in digital media, she covers a wide range of topics—from breaking news and politics to business insights and cultural trends. Jane's writing style blends clarity with depth, aiming to inform and inspire readers in a fast-paced media landscape. When she’s not chasing stories, she’s likely reading investigative features or exploring local cafés for her next writing spot.
- ANURAG DHOLEhttps://indiatadkha.com/author/bitlancetechhubgmail-com/
- ANURAG DHOLEhttps://indiatadkha.com/author/bitlancetechhubgmail-com/
- ANURAG DHOLEhttps://indiatadkha.com/author/bitlancetechhubgmail-com/
- ANURAG DHOLEhttps://indiatadkha.com/author/bitlancetechhubgmail-com/
