Herbert Smith Freehills advises BAT PLC on its c. £1.5 billion sale of shares in ITC Limited

Leading international law firm Herbert Smith Freehills has advised BAT PLC (BAT) on its approximately £1.5 billion sale of shares in ITC Limited (ITC).

Founded in 1902, BAT is a leading FTSE 100 British multinational consumer company that manufactures and sells global combustible brands and a growing range of nicotine and smokeless tobacco products. ITC is one of India's leading conglomerate companies, with businesses across fast-moving consumer goods (FMCG), hotels, packaging, paperboards, agribusiness and IT.

BAT's wholly owned subsidiary, Tobacco Manufacturers (India) Limited, sold approximately 3.5% of its shares in ITC by way of accelerated bookbuild process with net proceeds of c. £1.5 billion. Following the completion of the Block Trade, BAT remains a significant shareholder in ITC, with an approximately 25.5% holding.

BAT announced that it intends to use the net proceeds to commence its share buyback programme, starting with £700 million in 2024, which Herbert Smith Freehills has also been advising on.

The Herbert Smith Freehills team was led by Corporate partner Alex Kay, supported by Corporate senior associate Sarah Ries-Coward and Corporate associates Meera Thakrar and Eliza Joseph, alongside Tax partner Howard Murray, Tax associate David Alexander, US securities partner Dinesh Banani and US securities associate Jen Yong. Shardul Amarchand Mangaldas & Co (SAM), led by Mithun Thanks, advised BAT on the Indian law aspects of the transaction.

Alex Kay commented: "We are delighted to have advised BAT on this important transaction, which has been pivotal in recommencing the company's share buyback programme. We are proud of our longstanding relationship with BAT and its M&A team, with both Sarah and Meera being former secondees to the BAT M&A group. We look forward to continuing to support BAT on various matters across the firm."