ITC Hotels shares rose in early trade, however, profit booking emerged later after a large block deal in which 18.75 crore shares — representing about 9 percent equity — changed hands for Rs 3,856 crore. The shares were transacted at Rs 205.65 apiece in the block window.
British American Tobacco (BAT) is the likely seller. Reuters had reported on Thursday that BAT planned to offload a stake worth about USD 776 million in ITC Hotels as part of efforts to reduce debt and exit a non-strategic asset.
According to LSEG data, BAT is the second-largest shareholder in ITC Hotels. The holding was inherited through its stake in ITC Ltd, which spun off the hotels business earlier this year.
BAT Chief Executive Tadeu Marroco said the company’s direct shareholding in ITC Hotels resulted from the demerger process completed by ITC. "As previously stated, a direct stake in ITC Hotels is not a strategic holding for BAT, therefore I am pleased that the proceeds from this transaction will further support continued progress towards our stated 2026 leverage corridor," he said.
Shares of ITC Hotels, however, declined after an initial uptick to quote at Rs 207.40, down marginally by 0.15 percent.
(Reuters Inputs)Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
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