ITC Ltd., an Indian tobacco company British American Tobacco Plc owns a stake in, plans to spin off its hotel operations in a move to help simplify its operations.
(Bloomberg) — ITC Ltd., an Indian tobacco company British American Tobacco Plc owns a stake in, plans to spin off its hotel operations in a move to help simplify its operations.
ITC shareholders would get 60% of the business, while ITC would retain a 40% stake, the company said Monday.Â
BAT is ITC’s largest shareholder with a 29% stake and there has long been speculation about whether the UK company will divest its holding at some point to unlock value. BAT Chief Executive Officer Tadeu Marroco said in June that owning ITC gives the UK company a big opportunity in India’s oral tobacco market.
Shares of ITC fell as much as 3.3%. The stock has more than doubled in the past two years.
ITC also owns businesses in other non-tobacco consumer goods such as paper.
ITC’s market value is neck-and-neck with that of Hindustan Unilever Ltd. as the companies vie for the rank of India’s largest consumer stock.
Read more: ITC Dethrones India Unilever Unit to Become No. 1 Consumer Stock
(Updates with details on shareholding in third paragraph)
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