Investment in ITC a strategic one: BAT

BRITISH AMERICAN TOBACCO (BAT) views its investment in ITC as a strategic one, chief executive Tadeu Marroca said in an investor call on Tuesday, days after paring its 25.4% stake in the company.

- Viveat Susan Pinto

BRITISH AMERICAN TOBACCO (BAT) views its investment in ITC as a strategic one, chief executive Tadeu Marroca said in an investor call on Tuesday, days after paring its 25.4% stake in the company. The block deal last week saw BAT reduce its stake to 22.9% for ₹12,927 crore after offloading 313 million shares (2.5%) at ₹413 apiece.

Crucially, the stake sale marked a big shift in BAT's position within the ITC boardroom. A 25% holding allows shareholders to influence or oppose resolutions, especially special resolutions that require 75% of the votes cast to be in their favour. Marroca said that BAT would retain two directors on ITC's board post its block deal to ensure it has influence in the boardroom.