By P.R. Venkat


Books have closed for British American Tobacco's share sale in Indian conglomerate ITC that is likely to fetch the U.K.-based company over $2.0 billion.

ITC's shares are being sold in a price range between 384 Indian rupees ($4.64) and INR400.25, according to a term sheet seen by The Wall Street Journal on Wednesday.

BAT is selling a total of 436.85 million shares, or a 3.5% stake, in ITC through a block trade. The offer will raise $2.03 billion at the lower end of the range, the term sheet showed.

No price guidance will be given until the shares are crossed on the Indian Stock Exchanges on March 13 and investors should indicate demand sensitivities across the price range, according to the term sheet.

BAT, which is selling its shares through its unit, Tobacco Manufacturers (India), said that after the divestment, it would continue to hold a 25.5% stake in ITC.

The FTSE 100 cigarette maker, which houses the Kent, Dunhill, and Lucky Strike brands, intends to use the net proceeds of the block trade to buy back its shares over a period ending December 2025, starting with nearly $897 million in 2024.

ITC is one of India's largest private-sector companies. Its business interests include fast-moving consumer goods, hotels, packaging, agribusiness and IT businesses.

The term sheet showed that Bank of America Securities and Citigroup are acting as joint bookrunners for the deal.


Write to P.R. Venkat at venkat.pr@wsj.com


(END) Dow Jones Newswires

03-12-24 2332ET