British American Tobacco Share Discussion Threads

[mcunliffe1] 12/3/2024 12:20

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'.

[redbaron10] 12/3/2024 12:19

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.

[redbaron10] 12/3/2024 12:16

Either some BBs or sustains the dividend for another year at least

[topazfrenzy] 12/3/2024 12:05

If we can get to 2700 before the buybacks kick in then 3300 is almost a given

[montyhedge] 12/3/2024 11:48

If buybacks back over 3000p I think quite easily only my view.At least get near 10% yield while waiting.

[supermarky] 12/3/2024 11:45

lovely jubbly

[tuftymatt] 12/3/2024 11:43

Yeah let's hope it's getting all the ducks in a row ready for a push towards 3000 again as the year progresses.

Ex divi on the 21st then fresh ISA money to come in early April too so this looks really positive and I have topped up / averaged down.

Good luck all 👍🏻

[unastubbs] 12/3/2024 11:39

fantastic news!

[supermarky] 12/3/2024 11:29

another spike. Hopefully, this is revving up

[tonysss13] 12/3/2024 11:27

buy back confrimed from proceeds


Launch of Proposed Block Trade of up to 436,851,457 Ordinary Shares in ITC Limited



BAT PLC ("BAT" or the "Group") announces that its wholly-owned subsidiary Tobacco Manufacturers (India) Limited ("TMI") intends to sell up to 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"), subject to customary closing conditions. The Block Trade Shares represent up to c.3.5 per cent of ITC's issued ordinary share capital.



ITC is a valued associate of BAT in an attractive market with long-term growth potential where BAT benefits from exposure to the world's most populous market. BAT's initial investment in ITC dates back to the early 1900s and the two companies have a longstanding, mutually beneficial relationship.



As one of India's leading FMCG enterprises, ITC has delivered significant value for its shareholders and BAT continues to be fully supportive of ITC's management team, performance and strategy.



Following completion of the proposed Block Trade, BAT will remain a significant shareholder of ITC, with a c.25.5 per cent holding.



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.



Going forward the key elements of capital allocation at BAT will include:

· Continued investment in our transformation

· Progressive dividends

· Continued deleverage to a new range of 2-2.5x adjusted net debt / adjusted EBITDA.

· Sustainable share buybacks



Tadeu Marroco, Chief Executive of BAT said: "I am confident that ITC, under the stewardship of its current management, will continue to create further value for its shareholders. We look forward to remaining important shareholders in ITC as it continues its journey of growth. With this transaction BAT can accelerate the start of a sustainable buyback, while enabling us to continue to deleverage towards a new target range of 2-2.5x adjusted net debt / adjusted EBITDA."



We will share details of the value of net proceeds once the transaction has completed.



The person responsible for arranging for the release of this announcement on behalf

[car1pet] 12/3/2024 11:25

MCunliffe I assume the price drop in ITC is caused by BATS selling 4%. As I understand the BATS strategy it is to use the proceeds from the sale of ITC shared to reduce debt and part fund the BB. The market seems to like the strategy for now. Time will tell

[mcunliffe1] 12/3/2024 11:02

BATS sells down part of its stake in ITC.
BATS consequently receives a smaller amount of dividend from ITC.
BATS uses some of that ITC sale receipt to buy its own shares.
BATS can pay a greater dividend to its shareholders because there are fewer shares.
BATS has less income from ITC to pay its own shareholders.

Kinda' strange don't you think?

Is this a good time to be selling some of the ITC stake given ITC share price has fallen 16% this year so far. Wouldn't your BB logic imply that BATS should be buying MORE of the ITC shares?

With BATS owning 29% of ITC perhaps ITC's drop is also dragging down BATS. However, there are 36 analysts covering ITC. 15 give ITC a strong buy, 17 a buy.

So, BATS management are considering a 4% sell.

Way to go!

[supermarky] 12/3/2024 08:50

Well, after adding more yesterday, bats are now paying me £6,000 a year tax free in my isa. Average price 24.23Huge potential for capital appreciation whilst collecting the beautiful divis in the meantime.That's it for me in this stock. I don't want too many eggs in the bats basket.

[montyhedge] 12/3/2024 08:21

Of course get back over 3000p.

[topazfrenzy] 12/3/2024 08:21

Long term buybacks reduce the amount the company pays in dividends so it is a wise step to follow, especially when the PE is under 7!

[topazfrenzy] 12/3/2024 08:20

A buyback at this ridiculous valuation is the best thing that BATS can do now.

[montyhedge] 12/3/2024 08:09

Of course it's like getting a untaxed dividend, should push shareprice higher.

[this_is_me] 12/3/2024 07:45

Buybacks are an income tax free way of reinvesting dividends; useful if your shares are not in an ISA.

[boomdaboom] 11/3/2024 21:32

@MCunliffe1..don't be silly. This is a tobacco stock not a growth company! The investment is all about returning capital to shareholders! Bring on the buybacks, that's what we all want to see!

[unastubbs] 11/3/2024 20:00

Awesome! At these levels a buyback would make perfect sense.

[plastow] 11/3/2024 19:12

https://www.google.com/url?sa=t&source=web&rct=j&opi=89978449&url=https://sg.news.yahoo.com/finance/news/bat-set-sell-stake-indias-161900139.html&ved=2ahUKEwjfzYTO9OyEAxXNV0EAHTlXCKgQ0PADKAB6BAgOEAE&usg=AOvVaw0BUWPxmVCfAfPr8YtJWO88

[mcunliffe1] 11/3/2024 18:47

I despair with the constant calls for buy backs. They are a sign of a lack of imagination in the management team.

[car1pet] 11/3/2024 17:42

it didn't like me copying link. Google Finance BTI has the article

[montyhedge] 11/3/2024 17:41

Do we get buybacks if it happens?