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BAT confirms block sale of ITC shares

CONSUMER STAPLES
  • It didn't confirm the amount, but the reports line up with initial plans to reduce stake by 4% (~£1.9b).
  • BAT equities rose just over 1% on the headlines (potential for buybacks to restart) - credit bonds are unch. As a point of reference it generally pays out ~£5b/yr in dividends from ~£8b in FCF. It had £4.7b in cash to end the FY & is now close to target leverage (2.6* vs. 2.5*).
  • Not a name that screens cheap to us.

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