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BAT OFFERS ITC SHARES AT INR384-INR400.25 EACH IN BLOCK: TERMS

CONSUMER STAPLES
  • Headlines are for £700m share buyback this year will still leave £900m of cash from the sale. The ITC stake sale is also slightly less than expected (3.5% vs. 4% of the stake) leaving 0.5% that it doesn't need for veto rights (25%).
  • Net still a credit positive (though equities likely to celebrate more; BATLN +2.5%), but again a name that screens rich to us. As point of comparison higher-rated PM has now paused buybacks to target deleveraging & gives up little spread against BAT in the belly.

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