Leading international law firm Herbert Smith Freehills Kramer has advised BAT plc (BAT) on its approximately £315 million sale of shares in ITC Hotels Limited (ITC Hotels).
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 Hotels is an Indian hospitality company, which was demerged from ITC Limited earlier this year, that operates and manages hotels with over 100 hotels worldwide.
BAT's wholly owned subsidiaries, Tobacco Manufacturers (India) Limited, Rothmans International Enterprises Limited and Myddleton Investment Company Limited, sold 9% of the issued ordinary share capital in ITC Hotels by way of accelerated bookbuild process with net proceeds of c. £315 million. Following the completion of the block trade, BAT retains a c. 6.3 per cent holding in ITC Hotels.
BAT announced that it intends to use the net proceeds to progress to within the target 2-2.5x adjusted net debt/adjusted EBITDA leverage corridor (adjusted for Canada) by the end of 2026.
The Herbert Smith Freehills Kramer team was led by Corporate partner Sarah Ries-Coward and included senior associate Meera Thakrar and associate Bilal Ahmadzai, alongside Corporate partner Alex Kay, US securities partner Tom O'Neill and US securities associate Jen Yong. Shardul Amarchand Mangaldas & Co (SAM) advised BAT on the Indian law aspects of the transaction. Cains advised BAT on the Isle of Man law aspects of the transaction.
Sarah Ries-Coward said: "It was a pleasure to assist BAT with another important transaction before the end of the year – we look forward to continuing working with their M&A team and broader legal teams across various matters in 2026."