Quite a big stake left In ITC , worth a considerable amount for buybacks or debt reduction. |
xd next week.new tax /isa year approaching.Buy backs coming.Juicy quaurterly dividends assured.Bombed out share price with bad news priced in. |
jubberjim13 Mar '24 - 07:49 - 8657 of 8660
0 0 0
Is there a gap to 2600 ?
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Yes.....there is a gap at.....2,620 to 2,576.
Looking forward to it getting filled.
free stock charts from uk.advfn.com |
ITC trades on a materially higher multiple and generates little cash... opposite to BATS so makes total sense... at 25% they retain effective strategic power at ITC (no different to at 29%)...ITC is up because it fell into the placing and this removes an overhang with bats committing to staying above 25% |
I note an interesting aspect. BATS sells about 4% of its ITC stake, 437m shares and announces a share BB.
ITC share price rises 5% on the disclosure and execution of the SALE of a large chunk
BATS share price rises less than 5% on the disclosure of a share BB.
I read in a report in the national press that regulatory restrictions make it very difficult for companies to increase their holdings in India - ITC in particular - and the tobacco market was noted to be a growth area in India.
Seems odd that BATS should sell down part of it's 'valuable' holding in ITC at this time. Odd to me - maybe not odd to the market. |
I would have thought bears will start closing positions when buybacks start, plus 58.8p quarterly dividend on its way. I go short from time to time, but not when a company announces buybacks. |
Is there a gap to 2600 ?
Not that it makes much difference to me as an ex smoker
Purely as an exercise trying to get a handle on the subject
Good Luck all |
I bought into Bats on Monday at 2276 just wished I bought more now, hoping to see these around £25 just before Ex-div |
 RNS Number : 6633GBritish American Tobacco PLC13 March 2024 13 March 2024 Completion of Block Trade of 436,851,457 Ordinary Shares in ITC Limited Further to our announcement on 12 March 2024, BAT PLC ("BAT or the "Group") has completed the block trade of 436,851,457 ordinary shares (the "Block Trade Shares") in ITC Limited ("ITC") to institutional investors by way of an accelerated bookbuild process (the "Block Trade"). The Block Trade Shares represent c.3.5 per cent of ITC's issued ordinary share capital.Net proceeds from the Block Trade amount to INR 166.9bn (approximately £1.5bn at current exchange rates). As indicated in our announcement made on 12 March 2024, BAT intends to use the net proceeds to buy back BAT shares over a period ending December 2025, starting with £700m in 2024. This will enable the allocation of operating cashflow to fund investment in our transformation, continue to deleverage towards our new target range of 2-2.5x adjusted net debt / adjusted EBITDA, while also maintaining a progressive dividend and supporting a sustainable share buyback. |
Maybe so but it's a start. When debt reduces to target level scope to increase buyback 150 million in dividend payouts will be saved as wellThink it's a good move |
Agree the quantum is small but it creates an incremental buyer in an unloved name and is more tax efficient and hence more accretive than dividends... that said the progressive dividend yield remains close to 10 percent and the perception is now that it is safer than it was before so derisks it a bit |
At current prices it would result in less than 3% of shares bought back over 2 years. That is hardly going to make a huge difference. |
Raised GBP1.5bn through sale of 3-4% at a 5% discount... can now deleverage and (as they say) commence a "sustainable" share buyback... |
Brilliant ITC rise 9%. Looks like buybacks on its way boys.https://www.news18.com/business/itc-soars-9-as-bat-sells-3-5-stake-in-company-via-block-deal-key-details-for-investors-8813662.html |
On Tuesday, Citi reaffirmed its Buy rating on British American Tobacco (BATS:LN) (NYSE: NYSE:BTI), maintaining the price target at £27.00. The decision follows the tobacco company's recent announcement of its plans to sell approximately 437 million shares in ITC, which represents about 3.5% of ITC's share capital.
This sale is expected to yield around £1.7 billion at current market prices. After the completion of this transaction, British American Tobacco's stake in ITC will reduce to approximately 25.5%, but the company will retain its voting rights.
The firm also declared its intention to launch a share buyback program that will continue until the end of 2025. For the year 2024, the buyback is set at roughly £700 million. In addition to these developments, British American Tobacco has adjusted its target leverage range, now aiming for 2.0x-2.5x, a shift from the previous 2.5x-3.0x range.
These strategic financial moves come on the heels of the company's February 2024 announcement during the FY23 results, where British American Tobacco indicated it was exploring options for divestment. At that time, the complexity of the sell-down process was acknowledged, leaving some uncertainty in the market.
With the details of the divestment now clarified, the expectation is that the market will respond favorably to the news. The £700 million share buyback planned for 2024, along with additional buybacks slated for 2025, are anticipated to lend technical support to the company's shares in the foreseeable future. |
Just took a quid proft. Happy with that and leave some for the next fellow.
Looks like BATS is selling the family silverware. |
Happy with that RNS and the plan, which I think is sensible and balanced.
Also happy that I have been adding here in the 22's, even though it became my second largest holding (which was not my intention). Just going to let this one run for a bit now and take a view if/when that 27 handle comes into view. GLA. |
Buying back shares at low valuation is good. |
Looking a little toppy. |
BAT intends to use the net proceeds of the Block Trade to buy back BAT shares over a period ending December 2025, starting with £700m in 2024. We will continue to allocate operating cashflow to fund investment in our transformation and to further deleverage. |
Continued deleverage to a new range of 2-2.5X adjusted net debt / adjusted EBITDA.
Down from 2-3 and hitting mid range already.. :o) |
437m shares at, say about 400 Indian Rupees.
400 rupees is about £3.78 so about £1.65bn
No idea what percentage will be used on BB and debt reduction. |
so much did bat get for selling its indian shares,i cannot see a sum..?? |
so, the BB will add 22% to the share price (2700 to 3300).
What percentage of shares will be bought back?
What part of the 4% realisation of the ITC funds will be used for BB?
But, 22% rise is 'almost a given'. |
IMB is returning overall a rough 15% to shareholders this year with divis and BBs with another £1bn of buybacks to come,so more shareholder returns here please. |
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